Safe and Sound

GRAND PRAIRIE

GRAND PRAIRIE, TX
4
Star Rating
Founded in 1960, GRAND PRAIRIE is an NCUA-insured credit union headquartered in GRAND PRAIRIE, TX. As of December 31, 2017, the credit union held assets of $17.1 million.

Members have $8.3 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $8.3 million. GRAND PRAIRIE's 2,424 members currently have $15.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GRAND PRAIRIE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is useful. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

GRAND PRAIRIE received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

GRAND PRAIRIE's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to cover losses, cutting down on its buffer of equity. 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, resulting in diminished earnings and potentially more risk of a failure in the future.

GRAND PRAIRIE scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, GRAND PRAIRIE scored 10 out of a possible 30, falling short of the national average of 10.11.

GRAND PRAIRIE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.