Safe and Sound

UNITED MEMBERS

Tulsa, OK
4
Star Rating
Tulsa, OK-based UNITED MEMBERS is an NCUA-insured credit union founded in 1954. As of December 31, 2017, the credit union had assets of $13.4 million.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $2.2 million. UNITED MEMBERS's 1,300 members currently have $11.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED MEMBERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial instability for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, more capital is better.

UNITED MEMBERS scored 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

UNITED MEMBERS had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets means a credit union may have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

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

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

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

UNITED MEMBERS scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that UNITED MEMBERS is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.