Safe and Sound

T & P LONGVIEW

Longview, TX
5
Star Rating
Longview, TX-based T & P LONGVIEW is an NCUA-insured credit union started in 1950. As of December 31, 2017, the credit union had assets of $10.6 million.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $7.8 million. T & P LONGVIEW's 1,168 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, T & P LONGVIEW exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

T & P LONGVIEW scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

T & P LONGVIEW appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

T & P LONGVIEW scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

A below-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

How successful a credit union is at making money has an effect on its safety and soundness. 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 better able to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

T & P LONGVIEW scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that T & P LONGVIEW is doing better than 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.