Safe and Sound

TEMPLE-INLAND

Diboll, TX
5
Star Rating
Started in 1950, TEMPLE-INLAND is an NCUA-insured credit union headquartered in Diboll, TX. The credit union holds assets of $16.5 million, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union currently holds loans and leases worth $9.3 million. TEMPLE-INLAND's 1,802 members currently have $14.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEMPLE-INLAND exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is an important measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TEMPLE-INLAND achieved a score of 16 out of a possible 30 points, beating out the national average of 15.65.

TEMPLE-INLAND had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a credit union could have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a future failure.

TEMPLE-INLAND scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

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

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, TEMPLE-INLAND scored 14 out of a possible 30, beating out the national average of 10.11.

One indication that TEMPLE-INLAND is running ahead of 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.