Safe and Sound

UTICA DISTRICT TELEPHONE EMPLOYEES

UTICA, NY
5
Star Rating
UTICA DISTRICT TELEPHONE EMPLOYEES is a UTICA, NY-based, NCUA-insured credit union dating back to 1956. The credit union holds assets of $37.2 million, according to December 31, 2017, regulatory filings.

Members have $16.1 million on deposit tended by 5 full-time employees. With that footprint, the credit union holds loans and leases worth $16.1 million. Its 1,979 members currently have $27.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UTICA DISTRICT TELEPHONE EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

UTICA DISTRICT TELEPHONE EMPLOYEES scored above the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 30 out of a possible 30 points.

UTICA DISTRICT TELEPHONE EMPLOYEES's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its cushion 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, resulting in diminished earnings and potentially more risk of a failure in the future.

UTICA DISTRICT TELEPHONE EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

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

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, UTICA DISTRICT TELEPHONE EMPLOYEES scored 6 out of a possible 30, coming in below the national average of 10.11.

UTICA DISTRICT TELEPHONE EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.