Safe and Sound

TEXAS ASSOCIATIONS OF PROFESSIONALS

SAN ANTONIO, TX
4
Star Rating
Founded in 1978, TEXAS ASSOCIATIONS OF PROFESSIONALS is an NCUA-insured credit union headquartered in SAN ANTONIO, TX. Regulatory filings show the credit union having assets of $34.5 million, as of December 31, 2017.

With 12 full-time employees, the credit union currently holds loans and leases worth $31.1 million. TEXAS ASSOCIATIONS OF PROFESSIONALS's 1,731 members currently have $25.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEXAS ASSOCIATIONS OF PROFESSIONALS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is key. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

TEXAS ASSOCIATIONS OF PROFESSIONALS came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

TEXAS ASSOCIATIONS OF PROFESSIONALS's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

TEXAS ASSOCIATIONS OF PROFESSIONALS fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

TEXAS ASSOCIATIONS OF PROFESSIONALS scored 22 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

One sign that the credit union 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.