Safe and Sound

THD-6

Odessa, TX
2
Star Rating
THD-6 is an NCUA-insured credit union founded in 1954 and currently based in Odessa, TX. The credit union has assets of $3.9 million, according to December 31, 2017, regulatory filings.

Members have $2.7 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $2.7 million. THD-6's 593 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THD-6 exhibited a below-average condition, earning 2 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is important. From a safety and soundness perspective, the more capital, the better.

THD-6 received a score of 14 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

THD-6's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, THD-6 scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

THD-6 fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

THD-6 had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.