Safe and Sound

TEAM FINANCIAL

HOUSTON, TX
1
Star Rating
TEAM FINANCIAL is a Houston, TX-based, NCUA-insured credit union founded in 1970. The credit union holds $6.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.8 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.8 million. TEAM FINANCIAL's 1,388 members currently have $5.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEAM FINANCIAL exhibited a significantly below-average condition, earning 1 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the more capital, the better.

TEAM FINANCIAL finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 0 out of a possible 30 points.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a future failure.

TEAM FINANCIAL came in below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .

TEAM FINANCIAL's ratio of troubled assets was 0.00 percent in our test, beneath the national average and 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. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

TEAM FINANCIAL fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of -1.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.