Safe and Sound

YOAKUM COUNTY

PLAINS, TX
5
Star Rating
Started in 1949, YOAKUM COUNTY is an NCUA-insured credit union headquartered in PLAINS, TX. As of June 30, 2017, the credit union had assets of $9.0 million.

With 2 full-time employees, the credit union holds loans and leases worth $4.4 million. Its 1,250 members currently have $7.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, YOAKUM COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for 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.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is key. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, YOAKUM COUNTY achieved a score of 28 out of a possible 30 points, above the national average of 15.26.

YOAKUM COUNTY had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a failure in the future.

YOAKUM COUNTY did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of troubled 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. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

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

One indication that YOAKUM COUNTY is beating its peers in this area was its earnings ratio of 2.00 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.