Safe and Sound

UNITED FINANCIAL

SAGINAW, MI
4
Star Rating
Started in 1964, UNITED FINANCIAL is an NCUA-insured credit union headquartered in SAGINAW, MI. The credit union has $207.8 million in assets, according to December 31, 2017, regulatory filings.

Members have $133.5 million on deposit tended by 54 full-time employees. With that footprint, the credit union has amassed loans and leases worth $133.5 million. UNITED FINANCIAL's 20,408 members currently have $184.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED FINANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is better.

UNITED FINANCIAL finished below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

UNITED FINANCIAL appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

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 past-due loans.

A credit union with extensive holdings of these types of assets could eventually be forced 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 money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

UNITED FINANCIAL received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

UNITED FINANCIAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.