Safe and Sound

UBC

SAINT LOUIS, MO
5
Star Rating
UBC is an NCUA-insured credit union founded in 1959 and currently based in SAINT LOUIS, MO. As of December 31, 2017, the credit union had assets of $2.4 million.

Members have $1.1 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.1 million. UBC's 863 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UBC exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

UBC scored 18 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

UBC had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets means a credit union could eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

UBC scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

UBC's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, UBC scored 24 out of a possible 30, beating out the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.