Safe and Sound

TEXAS FARM BUREAU

WACO, TX
5
Star Rating
TEXAS FARM BUREAU is a WACO, TX-based, NCUA-insured credit union founded in 1956. The credit union has assets of $6.8 million, according to December 31, 2017, regulatory filings.

With 2 full-time employees, the credit union holds loans and leases worth $3.2 million. Its 830 members currently have $5.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEXAS FARM BUREAU exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It works as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

TEXAS FARM BUREAU scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 28 out of a possible 30 points.

TEXAS FARM BUREAU had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, decreasing its buffer 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, pushing down earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, TEXAS FARM BUREAU scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of TEXAS FARM BUREAU's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

TEXAS FARM BUREAU scored 6 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that TEXAS FARM BUREAU is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.