Safe and Sound

UNIVERSAL CITY STUDIOS

Burbank, CA
4
Star Rating
UNIVERSAL CITY STUDIOS is a Burbank, CA-based, NCUA-insured credit union founded in 1927. As of December 31, 2017, the credit union held assets of $72.0 million.

Members have $44.2 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $44.2 million. Its 6,831 members currently have $62.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSAL CITY STUDIOS 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 major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

UNIVERSAL CITY STUDIOS received a score of 6 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

UNIVERSAL CITY STUDIOS's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a future failure.

UNIVERSAL CITY STUDIOS scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than 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, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

UNIVERSAL CITY STUDIOS scored 12 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

UNIVERSAL CITY STUDIOS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.