Safe and Sound

UNITED SOUTHEAST

Bristol, TN
4
Star Rating
UNITED SOUTHEAST is a Bristol, TN-based, NCUA-insured credit union that opened its doors in 1941. The credit union has $160.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $114.4 million on deposit tended by 47 full-time employees. With that footprint, the credit union currently holds loans and leases worth $114.4 million. Its 16,834 members currently have $139.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED SOUTHEAST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a bulwark against losses and as protection for members during times of financial trouble for the credit union. When looking at safety and soundness, more capital is preferred.

UNITED SOUTHEAST scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 16 out of a possible 30 points.

UNITED SOUTHEAST's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

UNITED SOUTHEAST scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

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

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

UNITED SOUTHEAST scored 6 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One indication that UNITED SOUTHEAST is doing better than 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.