Safe and Sound

HOUSTON BELT & TERMINAL

HUMBLE, TX
5
Star Rating
HOUSTON BELT & TERMINAL is a HUMBLE, TX-based, NCUA-insured credit union dating back to 1949. The credit union holds assets of $4.3 million, according to December 31, 2017, regulatory filings.

With 2 full-time employees, the credit union has amassed loans and leases worth $2.6 million. HOUSTON BELT & TERMINAL's 575 members currently have $3.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOUSTON BELT & TERMINAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It acts as a buffer against losses and as protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

HOUSTON BELT & TERMINAL scored 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

HOUSTON BELT & TERMINAL's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact 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 a large number of these kinds of assets may eventually be required to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

HOUSTON BELT & TERMINAL fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One indication that the credit union is doing better than 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.