Safe and Sound

TEXAS DOW EMPLOYEES

Lake Jackson, TX
4
Star Rating
TEXAS DOW EMPLOYEES is a Lake Jackson, TX-based, NCUA-insured credit union dating back to 1954. As of December 31, 2017, the credit union held assets of $3.17 billion.

With 718 full-time employees, the credit union holds loans and leases worth $2.89 billion. TEXAS DOW EMPLOYEES's 275,453 members currently have $2.53 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEXAS DOW EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. Therefore, a credit union's level of capital is a key measurement of its financial strength. When it comes to safety and soundness, more capital is better.

TEXAS DOW EMPLOYEES received a score of 6 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

TEXAS DOW EMPLOYEES had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

TEXAS DOW EMPLOYEES scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

TEXAS DOW EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

TEXAS DOW EMPLOYEES outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

TEXAS DOW EMPLOYEES had an earnings ratio of 0.00 percent in our test, better 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.