Safe and Sound

TREASURY DEPARTMENT

WASHINGTON, DC
3
Star Rating
Started in 1935, TREASURY DEPARTMENT is an NCUA-insured credit union based in WASHINGTON, DC. The credit union has $169.9 million in assets, according to June 30, 2017, regulatory filings.

Members have $79.9 million on deposit tended by 39 full-time employees. With that footprint, the credit union holds loans and leases worth $79.9 million. TREASURY DEPARTMENT's 15,791 members currently have $156.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TREASURY DEPARTMENT exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial strength. It acts as a bulwark against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, TREASURY DEPARTMENT received a score of 6 out of a possible 30 points, less than the national average of 15.26.

TREASURY DEPARTMENT's capitalization ratio of 7.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 mortgages.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to cover losses, cutting down on 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, diminishing earnings and elevating the risk of a future failure.

TREASURY DEPARTMENT scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 3.00 percent of TREASURY DEPARTMENT's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

TREASURY DEPARTMENT scored 6 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

The credit union had an earnings ratio of 2.00 percent in our test, higher than the average for all credit unions, suggesting 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.