Safe and Sound

TEXHILLCO SCHOOL EMPLOYEES

Kerrville, TX
2
Star Rating
TEXHILLCO SCHOOL EMPLOYEES is a Kerrville, TX-based, NCUA-insured credit union founded in 1957. The credit union holds $15.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 7 full-time employees, the credit union holds loans and leases worth $12.5 million. TEXHILLCO SCHOOL EMPLOYEES's 1,926 members currently have $13.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEXHILLCO SCHOOL EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

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

TEXHILLCO SCHOOL EMPLOYEES received a score of 6 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

TEXHILLCO SCHOOL EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, cutting down on 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, decreasing earnings and elevating the risk of a future failure.

TEXHILLCO SCHOOL EMPLOYEES finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

A below-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

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

TEXHILLCO SCHOOL EMPLOYEES scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.