Safe and Sound

C-T WACO

Waco, TX
2
Star Rating
Waco, TX-based C-T WACO is an NCUA-insured credit union started in 1939. The credit union holds $6.7 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.9 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $3.9 million. Its 1,130 members currently have $5.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, C-T WACO exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

C-T WACO received a score of 12 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

C-T WACO's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble 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.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

C-T WACO fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

C-T WACO's ratio of troubled assets was 0.00 percent 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 affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, C-T WACO scored 0 out of a possible 30, coming in below the national average of 10.11.

One indication that C-T WACO is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.