Safe and Sound

UNION OF POLES IN AMERICA

Garfield Hts, OH
4
Star Rating
UNION OF POLES IN AMERICA is a Garfield Hts, OH-based, NCUA-insured credit union dating back to 0. The credit union has assets of $768,375, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $407,348. UNION OF POLES IN AMERICA's 438 members currently have $640,149 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNION OF POLES IN AMERICA 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 score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, UNION OF POLES IN AMERICA achieved a score of 24 out of a possible 30 points, beating the national average of 15.65.

UNION OF POLES IN AMERICA's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, decreasing 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

UNION OF POLES IN AMERICA scored 36 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

UNION OF POLES IN AMERICA'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

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, UNION OF POLES IN AMERICA scored 2 out of a possible 30, coming in below the national average of 10.11.

One indication that the credit union is outperforming 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.