Safe and Sound

DALLAS

DALLAS, TX
3
Star Rating
Founded in 1948, DALLAS is an NCUA-insured credit union based in DALLAS, TX. Regulatory filings show the credit union having $54.7 million in assets, as of December 31, 2017.

With 17 full-time employees, the credit union has amassed loans and leases worth $40.2 million. Its 6,160 members currently have $49.8 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, DALLAS received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

DALLAS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

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 unpaid mortgages.

A credit union with large numbers of these types of assets may eventually be required to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

DALLAS scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

The credit union'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

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, DALLAS scored 4 out of a possible 30, less than the national average of 10.11.

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