Safe and Sound

UNITED POLES

PERTH AMBOY, NJ
4
Star Rating
UNITED POLES is a PERTH AMBOY, NJ-based, NCUA-insured credit union started in 1965. Regulatory filings show the credit union having $39.3 million in assets, as of December 31, 2017.

Thanks to the work of 5 full-time employees, the credit union has amassed loans and leases worth $29.3 million. Its 2,026 members currently have $35.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED POLES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It works as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, more capital is better.

UNITED POLES received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

UNITED POLES's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets means a credit union could eventually have to use capital to absorb losses, shrinking 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 interest for the credit union, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, UNITED POLES scored 32 out of a possible 40 points, falling short of the national average of 38.09 points.

UNITED POLES's ratio of problem 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 has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

UNITED POLES scored 16 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.