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Credit union safety question
Old 09-28-2008, 08:42 AM   #1
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Credit union safety question

I do not know how to check the safety of a bank or credit union. I would like to know the financial condition of the Houston Police Federal Credit Union. Specifically, should one be concerned if one has uninsured funds there?
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Old 09-28-2008, 08:46 AM   #2
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Bauer Financial gives it the highest five star rating and Bankrate.com give this one four stars out of five, which would at least seem to make it one of the more secure institutions out there.

And as for the second question, there's *always* a concern, even if a small one, about having uninsured funds somewhere. It looks like the concern is minimal with this one, but still not zero.
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Old 09-28-2008, 09:10 AM   #3
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Thanks Ziggy!
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Old 09-28-2008, 09:51 AM   #4
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Here is a site to look at the Safe and Sound Ratings of Banks AND Credit Unions: Bankrate.com -- Safe & Sound (tm): Bankrate's free rating system for banks, thrifts, credit unions

Most will show a link to their latest financial reports on their respective sites.

Personally I would stick with large CU that do not have sub-prime exposure. One that seems to have none is PENFED (anyone can join max cost to join, if not otherwise eligible is $20).
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Old 09-28-2008, 10:02 AM   #5
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While I am not personally eager to have significant uninsured funds at any institution, a look at this institution's most recent financial report suggests that they are quite robustly capitalized and appear to have a reasonably high quality loan portfolio without any obvious problems. I don't see obvious problems and they appear to have a lot of margin for error based on their balance sheet.
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Old 09-28-2008, 10:13 AM   #6
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I missed the "uninsured funds" part of OP. Frankly, that is pretty risky, and IMHO usually unnecessary. Why would you want to do that?
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Old 09-28-2008, 12:02 PM   #7
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I do not know how to check the safety of a bank or credit union. I would like to know the financial condition of the Houston Police Federal Credit Union. Specifically, should one be concerned if one has uninsured funds there?
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Originally Posted by brewer12345 View Post
While I am not personally eager to have significant uninsured funds at any institution, a look at this institution's most recent financial report suggests that they are quite robustly capitalized and appear to have a reasonably high quality loan portfolio without any obvious problems. I don't see obvious problems and they appear to have a lot of margin for error based on their balance sheet.
Considering that most of the clientele have concealed-carry licenses in a state where "Your Honor, he needed killin' " is a judicial defense for 2nd-degree homicide, I'd say that the credit union has darn little margin for error...
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Old 09-28-2008, 12:07 PM   #8
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Dang, ya beat me to it Nords...
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Old 09-28-2008, 02:45 PM   #9
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Houston Police Federal Credit Union shows on their website that they are federally insured through NCUA. You can check that out at National Credit Union Administration - Home Page
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Old 09-28-2008, 03:15 PM   #10
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Dang, ya beat me to it Nords...
Only because REW must be napping or otherwise occupied.
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Old 09-28-2008, 03:21 PM   #11
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I was busy smoking a brisket, rack of st louis style ribs, some pineapple sausage and some hand made hotdogs, along with my wifes favorite cole slaw...shredded broccoli, cauliflower, carrots and red and white cabbage.

And yes, its a bitch to keep them lit when you're smoking them. Lousy draw too.
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Old 09-28-2008, 03:22 PM   #12
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Only because REW must be napping or otherwise occupied.
Sorry, I've been busy trying to get this TARP tied down.
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Old 09-28-2008, 03:31 PM   #13
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I do not know how to check the safety of a bank or credit union. I would like to know the financial condition of the Houston Police Federal Credit Union. Specifically, should one be concerned if one has uninsured funds there?
I looked at the financial report a few weeks ago and was satisfied. But, uninsured is uninsured, and recent history shows us that things change quickly. My accounts there are less than the insured amount and I don't have any plans to change that.

You can read the statements of financial condition here at this link http://www.ibanknet.com/scripts/call...bnid=usa_60170
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Considering that most of the clientele have concealed-carry licenses in a state where "Your Honor, he needed killin' " is a judicial defense for 2nd-degree homicide, I'd say that the credit union has darn little margin for error...
Yeah, but even there stuff happens. Somebody walked off with about 100 grand out of the vault one weekend within the last year or so. As far as I know they still haven't figured out who had sticky fingers.
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Old 09-28-2008, 03:40 PM   #14
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Sorry, I've been busy trying to get this TARP tied down.
Why a TARP? Don't we usually need something called "RAIN" before we need a TARP?
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Old 09-28-2008, 03:41 PM   #15
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Somebody walked off with about 100 grand out of the vault one weekend within the last year or so. As far as I know they still haven't figured out who had sticky fingers.
Were they insured/bonded to cover it?

$100k would not really make a dent in their earnings, let alone capital.
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Old 09-28-2008, 03:43 PM   #16
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Why a TARP? Don't we usually need something called "RAIN" before we need a TARP?
Not when we've in the middle of a $h!t$torm...
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Old 09-28-2008, 03:50 PM   #17
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Were they insured/bonded to cover it?

$100k would not really make a dent in their earnings, let alone capital.
I'm sure they were insured. I brought them 2.3 Million in seized cash one day and the chief of cash ops was waiting to hear the total so she could call in and get extra insurance because it was too late in the day to order a pickup from the Fed. Being ignorant of banking I thought the vault itself was insurance, but she told me that every dime on the premises is insured.
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