Safe and Sound

UNIVERSITY OF IOWA COMMUNITY

North Liberty, IA
5
Star Rating
North Liberty, IA-based UNIVERSITY OF IOWA COMMUNITY is an NCUA-insured credit union started in 1938. Regulatory filings show the credit union having assets of $4.67 billion, as of December 31, 2017.

Thanks to the efforts of 410 full-time employees, the credit union holds loans and leases worth $4.31 billion. UNIVERSITY OF IOWA COMMUNITY's 170,715 members currently have $3.04 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSITY OF IOWA COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score 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 an essential measurement of a credit union's financial strength. It works as a cushion against losses and as protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the higher the capital, the better.

UNIVERSITY OF IOWA COMMUNITY fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

UNIVERSITY OF IOWA COMMUNITY's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

UNIVERSITY OF IOWA COMMUNITY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, UNIVERSITY OF IOWA COMMUNITY scored 26 out of a possible 30, beating out the national average of 10.11.

One sign that UNIVERSITY OF IOWA COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.