Safe and Sound

SALT EMPLOYEES

GRAND SALINE, TX
4
Star Rating
Started in 1962, SALT EMPLOYEES is an NCUA-insured credit union headquartered in GRAND SALINE, TX. The credit union holds $1.9 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.0 million. Its 430 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SALT EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major 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 fortitude, capital is important. It acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is better.

SALT EMPLOYEES scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

SALT EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets means a credit union may eventually have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

SALT EMPLOYEES scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

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

One indication that the credit union is beating 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.