Safe and Sound

UNIVERSITY & COMMUNITY

Stillwater, OK
4
Star Rating
UNIVERSITY & COMMUNITY is an NCUA-insured credit union founded in 1968 and currently headquartered in Stillwater, OK. Regulatory filings show the credit union having assets of $115.0 million, as of December 31, 2017.

Members have $74.7 million on deposit tended by 23 full-time employees. With that footprint, the credit union holds loans and leases worth $74.7 million. Its 12,100 members currently have $102.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSITY & COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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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 cushion against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

UNIVERSITY & COMMUNITY fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

UNIVERSITY & COMMUNITY had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled 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 types of assets means a credit union may eventually have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

UNIVERSITY & COMMUNITY exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, UNIVERSITY & COMMUNITY scored 16 out of a possible 30, 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.