Safe and Sound

HOCKLEY COUNTY SCHOOL EMPLOYEES

Levelland, TX
3
Star Rating
HOCKLEY COUNTY SCHOOL EMPLOYEES is a Levelland, TX-based, NCUA-insured credit union started in 1954. Regulatory filings show the credit union having $31.3 million in assets, as of December 31, 2017.

With 8 full-time employees, the credit union has amassed loans and leases worth $21.5 million. Its 3,039 members currently have $27.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOCKLEY COUNTY SCHOOL EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

HOCKLEY COUNTY SCHOOL EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

HOCKLEY COUNTY SCHOOL EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended 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 unpaid loans.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, HOCKLEY COUNTY SCHOOL EMPLOYEES scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A below-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 earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

HOCKLEY COUNTY SCHOOL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

HOCKLEY COUNTY SCHOOL EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.