Safe and Sound

UNITED SAVERS TRUST

HOUSTON, TX
1
Star Rating
UNITED SAVERS TRUST is an NCUA-insured credit union started in 1952 and currently headquartered in HOUSTON, TX. The credit union has assets of $6.4 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union has amassed loans and leases worth $5.2 million. Its 1,018 members currently have $5.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED SAVERS TRUST exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. When it comes to safety and soundness, the more capital, the better.

UNITED SAVERS TRUST received a score of 4 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

UNITED SAVERS TRUST had a capitalization ratio of 4.00 percent in our test, lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

UNITED SAVERS TRUST scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn 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 financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

UNITED SAVERS TRUST scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.