Safe and Sound

UTAH PRISON EMPLOYEES

Draper, UT
3
Star Rating
UTAH PRISON EMPLOYEES is a Draper, UT-based, NCUA-insured credit union started in 1954. As of December 31, 2017, the credit union held assets of $3.6 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.2 million. Its 1,392 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UTAH PRISON EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during periods of economic instability for the credit union. It follows then that a credit union's level of capital is a key measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

UTAH PRISON EMPLOYEES received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

UTAH PRISON EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

UTAH PRISON EMPLOYEES scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

UTAH PRISON EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than its peers in this area.

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.