Safe and Sound

TEXACO OF HOUMA

Houma, LA
NR
Star Rating
Started in 1949, TEXACO OF HOUMA is an NCUA-insured credit union based in Houma, LA. Regulatory filings show the credit union having assets of $4.1 million, as of December 31, 2017.

Thanks to the work of 4 full-time employees, the credit union holds loans and leases worth $3.0 million. Its 1,805 members currently have $3.6 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

TEXACO OF HOUMA fell below the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

TEXACO OF HOUMA's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with a large number of these types of assets may eventually have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a future failure.

TEXACO OF HOUMA scored 32 out of a possible 40 points on Bankrate's test of asset quality, falling short of 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 making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

TEXACO OF HOUMA scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

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