Safe and Sound

UKRAINIAN FUTURE

WARREN, MI
4
Star Rating
WARREN, MI-based UKRAINIAN FUTURE is an NCUA-insured credit union started in 1961. As of December 31, 2017, the credit union had assets of $84.6 million.

Members have $28.4 million on deposit tended by 13 full-time employees. With that footprint, the credit union holds loans and leases worth $28.4 million. Its 5,692 members currently have $73.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UKRAINIAN FUTURE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is key. When looking at safety and soundness, the higher the capital, the better.

UKRAINIAN FUTURE racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

UKRAINIAN FUTURE had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, reducing its equity buffer. 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, resulting in diminished earnings and potentially more risk of a failure in the future.

UKRAINIAN FUTURE scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was 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, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

UKRAINIAN FUTURE scored 12 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.