Safe and Sound

PEOPLE'S TRUST

Houston, TX
3
Star Rating
Founded in 1935, PEOPLE'S TRUST is an NCUA-insured credit union based in Houston, TX. Regulatory filings show the credit union having assets of $497.2 million, as of December 31, 2017.

With 79 full-time employees, the credit union currently holds loans and leases worth $349.8 million. Its 32,744 members currently have $449.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEOPLE'S TRUST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, PEOPLE'S TRUST received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

PEOPLE'S TRUST appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, PEOPLE'S TRUST scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

PEOPLE'S TRUST fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One indication that PEOPLE'S TRUST is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.