Safe and Sound

TEXAS LEE

Houston, TX
4
Star Rating
Started in 1967, TEXAS LEE is an NCUA-insured credit union based in Houston, TX. Regulatory filings show the credit union having $655,457 in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $531,775. TEXAS LEE's 91 members currently have $239,768 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEXAS LEE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during periods of financial instability for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

TEXAS LEE received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

TEXAS LEE had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

TEXAS LEE scored 16 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

TEXAS LEE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.