Safe and Sound

EMPLOYEES UNITED

Paris, TX
5
Star Rating
EMPLOYEES UNITED is a Paris, TX-based, NCUA-insured credit union started in 1975. The credit union holds $11.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.7 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.7 million. EMPLOYEES UNITED's 1,625 members currently have $7.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EMPLOYEES UNITED exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an important measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

EMPLOYEES UNITED racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

EMPLOYEES UNITED's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets means a credit union may have to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

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

EMPLOYEES UNITED's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

EMPLOYEES UNITED scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that EMPLOYEES UNITED is running ahead of 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.