Safe and Sound

ASSOCIATED CREDIT UNION OF TEXAS

League City, TX
4
Star Rating
League City, TX-based ASSOCIATED CREDIT UNION OF TEXAS is an NCUA-insured credit union founded in 1968. The credit union has $409.2 million in assets, according to December 31, 2017, regulatory filings.

With 169 full-time employees, the credit union currently holds loans and leases worth $264.0 million. Its 38,574 members currently have $363.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ASSOCIATED CREDIT UNION OF TEXAS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, ASSOCIATED CREDIT UNION OF TEXAS received a score of 10 out of a possible 30 points, below the national average of 15.65.

ASSOCIATED CREDIT UNION OF TEXAS had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, ASSOCIATED CREDIT UNION OF TEXAS scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 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 earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding 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.

ASSOCIATED CREDIT UNION OF TEXAS scored 16 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 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.