THE INSTITUTION'S SCORE
Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure the adequacy of a credit union's capital, UNIVERSITY received a score of 8 out of a possible 30 points, falling short of the national average of 15.65.
UNIVERSITY's capitalization ratio of 8.00 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.