Safe and Sound

BRAZOSPORT TEACHERS

Clute, TX
4
Star Rating
BRAZOSPORT TEACHERS is a Clute, TX-based, NCUA-insured credit union dating back to 1947. As of June 30, 2017, the credit union had assets of $40.5 million.

Thanks to the work of 9 full-time employees, the credit union currently holds loans and leases worth $17.2 million. Its 4,173 members currently have $34.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BRAZOSPORT TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. When looking at safety and soundness, the more capital, the better.

BRAZOSPORT TEACHERS scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.26.

BRAZOSPORT TEACHERS had a capitalization ratio of 16.00 percent in our test, better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, diminishing 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, resulting in depressed earnings and potentially more risk of a failure in the future.

BRAZOSPORT TEACHERS scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.15.

A below-average ratio of problem assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

BRAZOSPORT TEACHERS scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 3.00 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.