Safe and Sound

MEMORIAL

Houston, TX
3
Star Rating
MEMORIAL is an NCUA-insured credit union founded in 1953 and currently based in Houston, TX. The credit union has assets of $74.1 million, according to December 31, 2017, regulatory filings.

Members have $62.4 million on deposit tended by 30 full-time employees. With that footprint, the credit union holds loans and leases worth $62.4 million. MEMORIAL's 10,060 members currently have $65.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMORIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is crucial. When it comes to safety and soundness, the more capital, the better.

MEMORIAL 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.

MEMORIAL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union 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 diminished earnings and potentially more risk of a failure in the future.

MEMORIAL fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of MEMORIAL's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability 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. Losses, on the other hand, take away from a credit union's ability to do those things.

MEMORIAL scored 8 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

MEMORIAL 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.