Safe and Sound

UNITED ASSOCIATION

CONCORD, CA
5
Star Rating
UNITED ASSOCIATION is an NCUA-insured credit union founded in 1957 and currently based in CONCORD, CA. Regulatory filings show the credit union having assets of $6.7 million, as of December 31, 2017.

Members have $2.7 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.7 million. Its 1,488 members currently have $5.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED ASSOCIATION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It acts as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

UNITED ASSOCIATION scored 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

UNITED ASSOCIATION's capitalization ratio of 24.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover 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, pushing down earnings and elevating the risk of a future failure.

UNITED ASSOCIATION scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, UNITED ASSOCIATION scored 18 out of a possible 30, beating the national average of 10.11.

UNITED ASSOCIATION had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.