Safe and Sound

UNION TRADES

Parkersburg, WV
4
Star Rating
UNION TRADES is an NCUA-insured credit union started in 1972 and currently based in Parkersburg, WV. The credit union has assets of $25.7 million, according to December 31, 2017, regulatory filings.

With 17 full-time employees, the credit union currently holds loans and leases worth $14.2 million. Its 3,300 members currently have $22.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNION TRADES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, UNION TRADES achieved a score of 16 out of a possible 30 points, beating out the national average of 15.65.

UNION TRADES had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually have to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

UNION TRADES scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

UNION TRADES's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

UNION TRADES scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One sign that UNION TRADES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.