Safe and Sound

CREDIT UNION OF TEXAS

Dallas, TX
4
Star Rating
DALLAS, TX-based CREDIT UNION OF TEXAS is an NCUA-insured credit union started in 1931. As of December 31, 2017, the credit union had assets of $1.42 billion.

Members have $1.17 billion on deposit tended by 436 full-time employees. With that footprint, the credit union holds loans and leases worth $1.17 billion. Its 139,699 members currently have $1.19 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF TEXAS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

CREDIT UNION OF TEXAS fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

CREDIT UNION OF TEXAS's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets suggests a credit union may have to use capital to absorb losses, cutting down on its buffer of equity. 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 lower earnings and potentially more risk of a future failure.

CREDIT UNION OF TEXAS scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

CREDIT UNION OF TEXAS's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CREDIT UNION OF TEXAS scored 16 out of a possible 30, beating the national average of 10.11.

One sign that the credit union is doing better than 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.