Safe and Sound

UNITED SAVINGS

Fargo, ND
5
Star Rating
Founded in 1935, UNITED SAVINGS is an NCUA-insured credit union headquartered in Fargo, ND. As of December 31, 2017, the credit union had assets of $60.0 million.

Members have $47.8 million on deposit tended by 20 full-time employees. With that footprint, the credit union holds loans and leases worth $47.8 million. Its 4,840 members currently have $46.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED SAVINGS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, UNITED SAVINGS achieved a score of 24 out of a possible 30 points, beating out the national average of 15.65.

UNITED SAVINGS had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb 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 money, decreasing earnings and elevating the risk of a future failure.

UNITED SAVINGS scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

UNITED SAVINGS received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One indication that the credit union is running ahead of 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.