Safe and Sound

UNION BUILDING TRADES

Parsippany, NJ
4
Star Rating
Parsippany, NJ-based UNION BUILDING TRADES is an NCUA-insured credit union founded in 1973. The credit union holds $78.2 million in assets, according to December 31, 2017, regulatory filings.

With 12 full-time employees, the credit union currently holds loans and leases worth $44.9 million. UNION BUILDING TRADES's 34,573 members currently have $67.5 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, UNION BUILDING TRADES scored 16 out of a possible 30 points, beating the national average of 15.65.

UNION BUILDING TRADES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets suggests a credit union may have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

UNION BUILDING TRADES fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

UNION BUILDING TRADES scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One indication that UNION BUILDING TRADES is doing better than 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.