Safe and Sound

UNITED NEIGHBORHOOD

AUGUSTA, GA
5
Star Rating
UNITED NEIGHBORHOOD is an NCUA-insured credit union founded in 2002 and currently headquartered in AUGUSTA, GA. Regulatory filings show the credit union having $2.1 million in assets, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $1.7 million. UNITED NEIGHBORHOOD's 871 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED NEIGHBORHOOD exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during periods of financial instability for the credit union. Therefore, a credit union's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

UNITED NEIGHBORHOOD received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

UNITED NEIGHBORHOOD's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a future failure.

UNITED NEIGHBORHOOD finished below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 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

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

UNITED NEIGHBORHOOD beat the national average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.

One sign that UNITED NEIGHBORHOOD is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.