Safe and Sound

URBAN UPBOUND

Long Island Cit, NY
5
Star Rating
Started in 2009, URBAN UPBOUND is an NCUA-insured credit union headquartered in Long Island Cit, NY. The credit union holds assets of $909,183, according to December 31, 2017, regulatory filings.

Members have $101,729 on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $101,729. URBAN UPBOUND's 1,207 members currently have $786,594 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, URBAN UPBOUND exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of economic instability for the credit union. It follows then that an institution's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, URBAN UPBOUND received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

URBAN UPBOUND's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets may eventually force a credit union 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 thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

URBAN UPBOUND came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

A lower-than-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

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

URBAN UPBOUND outperformed the average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.

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