Safe and Sound

UNITED METHODIST CONNECTIONAL

MARIETTA, GA
3
Star Rating
Started in 1960, UNITED METHODIST CONNECTIONAL is an NCUA-insured credit union headquartered in MARIETTA, GA. The credit union holds assets of $29.4 million, according to December 31, 2017, regulatory filings.

With 8 full-time employees, the credit union currently holds loans and leases worth $19.3 million. Its 5,122 members currently have $26.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED METHODIST CONNECTIONAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major 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 acts as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial stability, capital is key. When looking at safety and soundness, the more capital, the better.

UNITED METHODIST CONNECTIONAL fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

UNITED METHODIST CONNECTIONAL had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

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

UNITED METHODIST CONNECTIONAL finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

UNITED METHODIST CONNECTIONAL's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

UNITED METHODIST CONNECTIONAL fell short of the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

UNITED METHODIST CONNECTIONAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.