Safe and Sound

UP ARKANSAS

NORTH LITTLE RO, AR
4
Star Rating
UP ARKANSAS is an NCUA-insured credit union started in 1971 and currently based in NORTH LITTLE RO, AR. As of December 31, 2017, the credit union held assets of $27.4 million.

Thanks to the work of 9 full-time employees, the credit union holds loans and leases worth $19.6 million. Its 3,569 members currently have $22.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UP ARKANSAS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. When looking at safety and soundness, more capital is preferred.

UP ARKANSAS exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 24 out of a possible 30 points.

UP ARKANSAS's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due 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 types of assets could eventually be forced to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

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

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, UP ARKANSAS scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.