Safe and Sound

U.P. STATE

ESCANABA, MI
3
Star Rating
U.P. STATE is an NCUA-insured credit union started in 1955 and currently headquartered in ESCANABA, MI. Regulatory filings show the credit union having $75.3 million in assets, as of December 31, 2017.

Members have $51.5 million on deposit tended by 30 full-time employees. With that footprint, the credit union currently holds loans and leases worth $51.5 million. U.P. STATE's 9,341 members currently have $67.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.P. STATE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is useful. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, U.P. STATE received a score of 8 out of a possible 30 points, failing to reach the national average of 15.65.

U.P. STATE had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

U.P. STATE scored 32 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

Troubled assets made up 0.00 percent of U.P. STATE's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

U.P. STATE exceeded the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

U.P. STATE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.