Safe and Sound

AUSTIN

AUSTIN, TX
3
Star Rating
Founded in 1967, AUSTIN is an NCUA-insured credit union headquartered in AUSTIN, TX. Regulatory filings show the credit union having $31.2 million in assets, as of December 31, 2017.

With 10 full-time employees, the credit union has amassed loans and leases worth $18.7 million. Its 2,899 members currently have $28.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AUSTIN exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, AUSTIN received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

AUSTIN appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

AUSTIN beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

AUSTIN's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, AUSTIN scored 4 out of a possible 30, below the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 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.