Safe and Sound

E E SOUTH TEXAS

Corpus Christi, TX
4
Star Rating
E E SOUTH TEXAS is an NCUA-insured credit union started in 1952 and currently headquartered in Corpus Christi, TX. The credit union holds assets of $6.6 million, according to December 31, 2017, regulatory filings.

E E SOUTH TEXAS's 337 members currently have $5.4 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $554,743.

Overall, Bankrate believes that, as of December 31, 2017, E E SOUTH TEXAS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

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 as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the higher the capital, the better.

E E SOUTH TEXAS beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 28 out of a possible 30 points.

E E SOUTH TEXAS appears to be stronger than its peers, with a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

E E SOUTH TEXAS scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

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, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

E E SOUTH TEXAS scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than 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.