Safe and Sound

PORT OF HOUSTON

Houston, TX
5
Star Rating
Houston, TX-based PORT OF HOUSTON is an NCUA-insured credit union started in 1956. As of June 30, 2017, the credit union had assets of $6.7 million.

Members have $5.3 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $5.3 million. PORT OF HOUSTON's 871 members currently have $5.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PORT OF HOUSTON exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is valuable. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, PORT OF HOUSTON achieved a score of 30 out of a possible 30 points, better than the national average of 15.26.

PORT OF HOUSTON's capitalization ratio of 24.00 percent in our test was higher 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 determine the impact of problem 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 lots of these kinds of assets may eventually have to use capital to cover losses, reducing its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.

PORT OF HOUSTON 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 4.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, PORT OF HOUSTON scored 10 out of a possible 30, coming in below the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 5.00 percent in our test, higher 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.