Safe and Sound

HOUSTON MUSICIANS

HOUSTON, TX
4
Star Rating
HOUSTON MUSICIANS is an NCUA-insured credit union started in 1953 and currently headquartered in HOUSTON, TX. The credit union has $5.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.2 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.2 million. HOUSTON MUSICIANS's 765 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOUSTON MUSICIANS 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial resilience, capital is key. When looking at safety and soundness, the more capital, the better.

HOUSTON MUSICIANS achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

HOUSTON MUSICIANS had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, diminishing 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

HOUSTON MUSICIANS scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

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

HOUSTON MUSICIANS had an earnings ratio of 0.00 percent in our test, above 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.