Safe and Sound

TRANSTAR

HOUSTON, TX
2
Star Rating
TRANSTAR is an NCUA-insured credit union started in 1951 and currently headquartered in HOUSTON, TX. As of December 31, 2017, the credit union held assets of $31.6 million.

With 9 full-time employees, the credit union holds loans and leases worth $22.0 million. TRANSTAR's 3,753 members currently have $29.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRANSTAR 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 did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is key. It works as a buffer against losses and affords protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

TRANSTAR fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 2 out of a possible 30 points.

TRANSTAR appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 2.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

TRANSTAR scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

A below-average ratio of troubled 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 has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, TRANSTAR scored 0 out of a possible 30, lower than the national average of 10.11.

TRANSTAR had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.