Safe and Sound

MARSHALL T & P EMPLOYEES

MARSHALL, TX
5
Star Rating
Started in 1948, MARSHALL T & P EMPLOYEES is an NCUA-insured credit union headquartered in MARSHALL, TX. Regulatory filings show the credit union having assets of $12.1 million, as of December 31, 2017.

With 2 full-time employees, the credit union holds loans and leases worth $8.3 million. Its 1,370 members currently have $9.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MARSHALL T & P EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, MARSHALL T & P EMPLOYEES achieved a score of 28 out of a possible 30 points, exceeding the national average of 15.65.

MARSHALL T & P EMPLOYEES's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

MARSHALL T & P EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, MARSHALL T & P EMPLOYEES scored 14 out of a possible 30, exceeding the national average of 10.11.

MARSHALL T & P EMPLOYEES had an earnings ratio of 0.00 percent in our test, better 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.