Safe and Sound

MARSHALL T & P EMPLOYEES

MARSHALL, TX
5
Star Rating
MARSHALL, TX-based MARSHALL T & P EMPLOYEES is an NCUA-insured credit union founded in 1948. As of June 30, 2017, the credit union had assets of $12.1 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $8.2 million. MARSHALL T & P EMPLOYEES's 1,364 members currently have $9.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MARSHALL T & P EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

MARSHALL T & P EMPLOYEES scored 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

MARSHALL T & P EMPLOYEES's capitalization ratio of 18.00 percent in our test was better than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

MARSHALL T & P EMPLOYEES did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

MARSHALL T & P EMPLOYEES's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

MARSHALL T & P EMPLOYEES scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

The credit union had an earnings ratio of 9.00 percent in our test, above the average for all credit unions, suggesting 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.