Safe and Sound

METHODIST HOSPITAL EMPLOYEES

DALLAS, TX
2
Star Rating
DALLAS, TX-based METHODIST HOSPITAL EMPLOYEES is an NCUA-insured credit union started in 1952. Regulatory filings show the credit union having assets of $9.6 million, as of December 31, 2017.

Members have $3.5 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.5 million. Its 2,188 members currently have $8.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, METHODIST HOSPITAL EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

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. When looking at safety and soundness, the higher the capital, the better.

METHODIST HOSPITAL EMPLOYEES came in below the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

METHODIST HOSPITAL EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these kinds of assets means a credit union could have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a failure in the future.

METHODIST HOSPITAL EMPLOYEES scored 32 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.

Troubled assets made up 0.00 percent of METHODIST HOSPITAL EMPLOYEES's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

METHODIST HOSPITAL EMPLOYEES underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.