Safe and Sound

BAYLOR HEALTH CARE SYSTEM

Dallas, TX
5
Star Rating
Dallas, TX-based BAYLOR HEALTH CARE SYSTEM is an NCUA-insured credit union founded in 1957. Regulatory filings show the credit union having $74.1 million in assets, as of December 31, 2017.

Thanks to the work of 11 full-time employees, the credit union holds loans and leases worth $31.8 million. Its 5,662 members currently have $62.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAYLOR HEALTH CARE SYSTEM exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major 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 experiencing economic trouble. Therefore, an institution's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BAYLOR HEALTH CARE SYSTEM racked up 22 out of a possible 30 points, exceeding the national average of 15.65.

BAYLOR HEALTH CARE SYSTEM appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with lots of these kinds of assets could eventually be forced to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

BAYLOR HEALTH CARE SYSTEM scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A lower-than-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 has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

BAYLOR HEALTH CARE SYSTEM received above-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

BAYLOR HEALTH CARE SYSTEM had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.