Safe and Sound

SCOTT AND WHITE EMPLOYEES

TEMPLE, TX
2
Star Rating
TEMPLE, TX-based SCOTT AND WHITE EMPLOYEES is an NCUA-insured credit union started in 1962. Regulatory filings show the credit union having $46.6 million in assets, as of December 31, 2017.

Thanks to the work of 11 full-time employees, the credit union holds loans and leases worth $16.5 million. Its 5,370 members currently have $44.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SCOTT AND WHITE EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

SCOTT AND WHITE EMPLOYEES finished below the national average of 15.65 on our test to measure capital adequacy, racking up 2 out of a possible 30 points.

SCOTT AND WHITE EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 2.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union could have to use capital to cover 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

SCOTT AND WHITE EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A lower-than-average ratio of troubled 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 affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, SCOTT AND WHITE EMPLOYEES scored 0 out of a possible 30, coming in below the national average of 10.11.

One indication that SCOTT AND WHITE EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.