Safe and Sound

UNITED AMERICA WEST

Van Nuys, CA
1
Star Rating
UNITED AMERICA WEST is an NCUA-insured credit union founded in 1970 and currently headquartered in Panorama City, CA. As of December 31, 2017, the credit union held assets of $4.1 million.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $1.5 million. UNITED AMERICA WEST's 491 members currently have $3.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED AMERICA WEST exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion 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 resilience, capital is valuable. When looking at safety and soundness, the more capital, the better.

UNITED AMERICA WEST fell below the national average of 15.65 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.

UNITED AMERICA WEST's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these types of assets may eventually be required to use capital to absorb losses, reducing 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, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, UNITED AMERICA WEST scored 24 out of a possible 40 points, below the national average of 38.09 points.

Troubled assets made up 0.00 percent of UNITED AMERICA WEST's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

UNITED AMERICA WEST underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

UNITED AMERICA WEST had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming its peers in this area.

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.