Safe and Sound

PARIS DISTRICT

Paris, TX
4
Star Rating
Paris, TX-based PARIS DISTRICT is an NCUA-insured credit union founded in 1952. As of December 31, 2017, the credit union held assets of $664,721.

The credit union has amassed loans and leases worth $252,849. Its 230 members currently have $573,090 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PARIS DISTRICT exhibited a good condition, earning 4 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 U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during times of economic trouble for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

PARIS DISTRICT beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 18 out of a possible 30 points.

PARIS DISTRICT appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, higher 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 troubled assets, such as unpaid mortgages.

A credit union with a large number of these types of assets may eventually be required to use capital to cover losses, shrinking 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 elevating the risk of a failure in the future.

PARIS DISTRICT scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

PARIS DISTRICT received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

PARIS DISTRICT had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.