Safe and Sound

EMPLOYEES

Dallas, TX
4
Star Rating
EMPLOYEES is an NCUA-insured credit union started in 1952 and currently headquartered in DALLAS, TX. The credit union has $64.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $44.6 million on deposit tended by 23 full-time employees. With that footprint, the credit union has amassed loans and leases worth $44.6 million. EMPLOYEES's 6,474 members currently have $57.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade 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 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 fortitude, capital is crucial. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, EMPLOYEES received a score of 12 out of a possible 30 points, falling short of the national average of 15.65.

EMPLOYEES's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

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 problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

EMPLOYEES beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

EMPLOYEES's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

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

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.