Safe and Sound

DOMINO

Texarkana, TX
4
Star Rating
DOMINO is an NCUA-insured credit union started in 1973 and currently headquartered in Texarkana, TX. As of December 31, 2017, the credit union had assets of $61.2 million.

Members have $39.5 million on deposit tended by 21 full-time employees. With that footprint, the credit union currently holds loans and leases worth $39.5 million. Its 5,396 members currently have $51.7 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

DOMINO achieved a score of 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

DOMINO appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, DOMINO scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

DOMINO fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.