Safe and Sound

URBANA MUNICIPAL EMPLOYES

Urbana, IL
5
Star Rating
URBANA MUNICIPAL EMPLOYES is an NCUA-insured credit union founded in 1950 and currently based in Urbana, IL. As of December 31, 2017, the credit union had assets of $4.2 million.

The credit union has amassed loans and leases worth $3.8 million. URBANA MUNICIPAL EMPLOYES's 829 members currently have $3.6 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is important. When it comes to safety and soundness, the higher the capital, the better.

URBANA MUNICIPAL EMPLOYES received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

URBANA MUNICIPAL EMPLOYES's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, URBANA MUNICIPAL EMPLOYES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

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

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

URBANA MUNICIPAL EMPLOYES scored 20 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One sign that the credit union is doing better than 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.