Safe and Sound

COWBOY COUNTRY

PREMONT, TX
3
Star Rating
Started in 1948, COWBOY COUNTRY is an NCUA-insured credit union based in PREMONT, TX. The credit union has assets of $15.6 million, according to December 31, 2017, regulatory filings.

Members have $10.6 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $10.6 million. COWBOY COUNTRY's 2,119 members currently have $12.7 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is valuable. It works as a bulwark against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

COWBOY COUNTRY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

COWBOY COUNTRY appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to cover losses, reducing 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 money, resulting in reduced earnings and potentially more risk of a failure in the future.

COWBOY COUNTRY scored 28 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A below-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

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, COWBOY COUNTRY scored 8 out of a possible 30, failing to reach the national average of 10.11.

COWBOY COUNTRY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.