Safe and Sound

COASTAL BEND P O

Victoria, TX
5
Star Rating
COASTAL BEND P O is a Victoria, TX-based, NCUA-insured credit union that opened its doors in 1956. Regulatory filings show the credit union having assets of $15.7 million, as of December 31, 2017.

Thanks to the efforts of 3 full-time employees, the credit union holds loans and leases worth $5.8 million. COASTAL BEND P O's 1,133 members currently have $13.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COASTAL BEND P O exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is key. It acts as a buffer against losses and affords protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

COASTAL BEND P O scored 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

COASTAL BEND P O's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets could eventually be forced to use capital to absorb losses, decreasing 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, COASTAL BEND P O scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

COASTAL BEND P O's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

COASTAL BEND P O scored 8 out of a possible 30 on Bankrate's test of earnings, falling short of 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.