Safe and Sound

UNITED COMMUNITY

Galena Park, TX
4
Star Rating
UNITED COMMUNITY is a Houston, TX-based, NCUA-insured credit union that opened its doors in 1950. Regulatory filings show the credit union having $102.2 million in assets, as of December 31, 2017.

Members have $80.4 million on deposit tended by 44 full-time employees. With that footprint, the credit union currently holds loans and leases worth $80.4 million. UNITED COMMUNITY's 11,781 members currently have $91.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED COMMUNITY 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 American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, UNITED COMMUNITY received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

UNITED COMMUNITY's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, UNITED COMMUNITY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

UNITED COMMUNITY's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely 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 earnings test, UNITED COMMUNITY scored 8 out of a possible 30, lower than the national average of 10.11.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.