Safe and Sound

UNITED CONSUMERS

Independence, MO
2
Star Rating
UNITED CONSUMERS is an NCUA-insured credit union started in 1941 and currently based in Independence, MO. Regulatory filings show the credit union having assets of $142.4 million, as of December 31, 2017.

With 57 full-time employees, the credit union currently holds loans and leases worth $84.6 million. UNITED CONSUMERS's 18,466 members currently have $126.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED CONSUMERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, UNITED CONSUMERS received a score of 12 out of a possible 30 points, falling short of the national average of 15.65.

UNITED CONSUMERS appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

UNITED CONSUMERS finished below the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

UNITED CONSUMERS received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

The credit union 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.