Why "healthiest" matters — and what it doesn't mean
A credit union's financial health is a measure of how well-positioned it is to absorb loan losses, keep deposits safe, and continue serving its members through economic ups and downs. The institutions on this list are statistically the strongest small credit unions in the country, but it's important to be clear about what that means and what it doesn't.
Every federally insured credit union in this list is covered by the National Credit Union Share Insurance Fund, which protects member deposits up to $250,000 per ownership category. That insurance applies whether a credit union is at the top of this list or not. A high or low Texas Ratio doesn't change the fundamental safety of insured deposits.
What this list does identify is institutions running with very low levels of non-performing loans relative to their available capital — a hallmark of conservative underwriting, strong member relationships, and stable communities. These are credit unions that have, in recent quarters, made very few bad loans relative to their reserves.
Three measures of health, side-by-side
Every credit union on this ranking is presented with three signals of financial strength:
- Texas Ratio — the primary ranking metric. Lower is healthier. It compares non-performing loans and other real estate owned to net worth and loan-loss reserves. Industry analysts have used 100% as a warning threshold; every institution on this list is well under 1%.
- MonitorBankRates Star Rating — our proprietary 1-to-5 score combining Texas Ratio, net worth ratio, and member feedback. A 5.0 indicates the strongest tier of overall health.
- MBR Health Grade — a 0–100 letter grade derived from the star rating and Texas Ratio that translates the financial signals into an at-a-glance label, A+ down through F.
Together these three give a fuller picture than any single number. A credit union ranked highly here is healthy across all three.
What this list does and doesn't tell you
A ranking like this is most useful when readers understand exactly what's being measured. The Texas Ratio captures one important dimension of institutional health: the relationship between loans that have gone bad and the capital available to absorb those losses. It's a backward-looking measure based on what's already on the books, not a prediction of future performance.
What a high ranking does suggest. A credit union near the top of this list has, in recent quarters, made very few problem loans relative to its capital reserves. That generally reflects conservative underwriting, stable member demographics, careful loan portfolio management, and adequate capitalization. These institutions tend to weather economic downturns better than their peers and have more flexibility to maintain rates and services through difficult periods.
What it doesn't measure. Texas Ratio says nothing about a credit union's operational efficiency, technology investment, customer service quality, branch convenience, ATM network, or rate competitiveness on deposits and loans. A 5.0-star institution with a perfect Texas Ratio could still have a clunky mobile app, limited branch hours, or middling rates compared to competitors. Financial health is necessary but not sufficient for being the right credit union for a given member.
What it especially doesn't measure: deposit safety. Member share deposits at every credit union on this list are insured by the National Credit Union Share Insurance Fund up to $250,000 per ownership category. That insurance applies identically at the #1-ranked institution, the #100-ranked institution, and at credit unions that didn't make the list at all. Texas Ratio is a quality indicator for the institution, not a safety threshold for the depositor.
Why we rank by Texas Ratio rather than the Star Rating. Our Star Rating combines Texas Ratio with net worth and member reviews; the Health Grade compounds star and Texas Ratio. Among small healthy credit unions, almost all earn 5.0 stars and an A+ grade — those measures don't differentiate the strongest from the merely strong. Texas Ratio at this end of the spectrum spreads from 0.01% to roughly 0.34%, which is enough variation to produce a meaningful ranking. We use the more granular metric to rank, and show the others alongside for cross-reference.
Tier 1: Exceptional Health (Top 25)
Texas Ratio at or below 0.06%. The strongest of the strong.
Tier 2: Outstanding Health (Ranks 26-100)
The next 75 strongest small credit unions.
Past editions
How to evaluate a small credit union before joining
Financial health is the foundation, but it's only one of several factors that determine whether a particular credit union is right for you. Once you've narrowed your shortlist to institutions with strong Texas Ratios and high Star Ratings, here's a practical framework for evaluating which one to actually join.
1. Membership eligibility
Credit unions are member-owned cooperatives that limit membership to specific groups defined by their charter. Some common eligibility paths: living, working, or worshipping in a defined geographic area; employment with a specific company or industry; membership in an associated organization; or family relationship to an existing member. Many of the institutions on this list are employer-based or community-based credit unions — check each one's "Become a Member" page for current eligibility rules. If you're not eligible directly, family members of current members often qualify.
2. Branch and ATM access
Small credit unions typically operate just one or a handful of physical branches. If in-person banking matters to you, the branch network is a real constraint. The flip side: most participate in shared branching networks (CO-OP Shared Branch is the largest, with over 5,600 participating locations) where you can transact at any participating credit union's branch as if it were your own. Many also belong to ATM surcharge-free networks like CO-OP, Allpoint, or MoneyPass that give members access to tens of thousands of ATMs nationwide. Ask each institution about their network memberships.
3. Mobile and online banking
A high-quality mobile app and online banking platform increasingly defines day-to-day banking experience. Smaller credit unions vary widely here — some have invested in modern, polished apps; others use older platforms that lag behind what big banks offer. Before opening an account, search for the institution's mobile app on the App Store or Google Play and check the rating, recent reviews, and feature set. Look for mobile check deposit, real-time transaction alerts, peer-to-peer transfers, card lock/unlock controls, and biometric login. (MonitorBankRates' upcoming 2026 ranking of best small credit union mobile apps will provide a head-to-head comparison.)
4. Rate competitiveness
Credit unions are member-owned, which often translates to better deposit rates and lower loan rates than equivalent banks. But that's a tendency, not a guarantee — rate competitiveness varies institution by institution. Compare current rates on the products you actually use: high-yield savings or money market accounts, certificates of deposit (CDs / share certificates), checking account interest if applicable, and any loans you might need (auto, mortgage, personal). Each institution's profile page on MonitorBankRates.com lists current rates compared against our database average for that product.
5. Account fees
Read the fee schedule before opening. Common items to check: monthly maintenance fees on checking and savings (most credit unions don't charge these but some do), overdraft and non-sufficient funds fees, ATM surcharges for out-of-network withdrawals, wire transfer fees, and minimum balance requirements. Small institutions sometimes have lower headline fees but stricter conditions; it's worth knowing the full picture.
6. Customer service quality
One of the genuine advantages of small credit unions is personal service — the institution often knows its members by name, decisions can be made locally, and customer service tends to be more responsive than at large national banks. To gauge this before joining, look at recent member reviews on Google, the credit union's own website, or third-party review sites. Pay particular attention to how the institution responds to negative reviews and whether complaints get resolved. Friendly tellers matter, but how the institution handles problems matters more.
7. Service breadth
Smaller institutions sometimes don't offer the full range of banking products you might need. Common gaps: limited mortgage options, no business banking, no investment services, no international wire transfers, no foreign currency. If you anticipate needing one of these, ask before opening. Many small credit unions partner with larger institutions or CUSO-managed services to fill gaps, but the experience can feel different than dealing with a single full-service institution.
8. Long-term commitment to members
Small credit unions occasionally merge into larger ones, which can be good (more services, better technology) or bad (loss of local character, branch closures, fee changes). Look at recent merger activity and any communications about the institution's future direction. The best small credit unions have stable leadership, strong member retention, growing membership, and a clear sense of who they exist to serve.
Methodology & Data Sources
Texas Ratio
The Texas Ratio compares a financial institution's non-performing loans and other real estate owned to its total available capital and reserves. It was developed by analysts at RBC Capital Markets in the 1980s after observing patterns in failed Texas banks. A lower Texas Ratio indicates a stronger ability to absorb loan losses without impairing the institution's capital base.
For credit unions, we calculate Texas Ratio as:
(Delinquent Loans + Other Real Estate Owned) ÷ (Net Worth + Loan Loss Reserves) × 100
Source data is each credit union's NCUA Form 5300 quarterly call report.
MonitorBankRates Star Rating
Our proprietary 1-to-5 star rating evaluates each credit union's overall financial stability and combines it with member feedback. The base score begins at 5.0 and is reduced for elevated Texas Ratio (deductions begin once the ratio exceeds 15%) and below-target net worth ratio (the regulatory well-capitalized threshold for credit unions is 7.0%).
Where the institution has received user reviews on MonitorBankRates.com, the financial component is weighted at 70% and member-review average at 30%, producing the published star rating. Where no member reviews exist yet, the star rating is the financial-health score alone.
A 5.0 star rating is described on our institution profile pages as "Exceptional"; 4.0–4.7 as "Excellent"; 3.5–3.9 as "Very Good"; 3.0–3.4 as "Good"; 2.5–2.9 as "Fair"; 2.0–2.4 as "Average"; and below 2.0 as "Weak".
MBR Health Grade
The MBR Health Grade is a 0–100 score and corresponding letter grade designed to give an at-a-glance read on overall institutional health. It blends the star rating and Texas Ratio into a single compact signal.
Health Score = 100 − ((5.0 − Star Rating) × 10) − (Texas Ratio × 0.5), bounded between 0 and 100.
Letter grade thresholds: A+ (97-100), A (93-96), A- (90-92), B+ (87-89), B (83-86), B- (80-82), C+ (77-79), C (73-76), C- (70-72), D+ (67-69), D (63-66), D- (60-62), F (below 60). Every credit union on this Top 100 list earns an A+ Health Grade.
Inclusion criteria
To be eligible for this list, a credit union must:
- Be federally insured and reporting to NCUA
- Have total assets between $50 million and $500 million
- Have a published institution profile on MonitorBankRates.com
- Report at least one quarter of underlying call-report data sufficient to calculate a non-zero Texas Ratio
Ranking and tiering
Credit unions are ranked by Texas Ratio, ascending (lower is healthier). When two credit unions have the same Texas Ratio, the larger institution by total assets ranks higher as a tiebreaker. The top 25 by this ranking are designated Tier 1: Exceptional Health; ranks 26 through 100 are Tier 2: Outstanding Health.
Glossary of terms
Plain-language definitions of the financial and regulatory terms used throughout this ranking.
Call Report (NCUA Form 5300)
The quarterly financial statement that every federally insured credit union is required to file with the National Credit Union Administration. It includes detailed balance sheet, income statement, and loan portfolio data — including delinquency, charge-offs, and net worth — that becomes the source data for analyses like this one. Call reports are public and downloadable from NCUA's website.
Credit Union
A not-for-profit, member-owned financial cooperative chartered to serve a defined membership group. Earnings are returned to members in the form of better deposit and loan rates rather than distributed to shareholders. The U.S. has approximately 4,500 federally insured credit unions, holding over $2 trillion in member deposits collectively.
Delinquent Loans
Loans on which the borrower has fallen behind on scheduled payments. NCUA call reports break out loans that are 60+ days past due as the primary delinquency measure used in our Texas Ratio calculation. Higher delinquency relative to the loan portfolio is generally a warning sign.
Loan Loss Reserves (Allowance for Loan and Lease Losses)
Money a credit union has set aside specifically to cover anticipated loan losses. Together with net worth, loan loss reserves form the denominator of the Texas Ratio — the total cushion available to absorb non-performing assets without impairing the institution.
MBR Health Grade
MonitorBankRates' 0–100 institutional health score and corresponding letter grade (A+ down to F), derived from the Star Rating and Texas Ratio. Designed for at-a-glance comparison. Every institution on this Top 100 list earns A+.
MonitorBankRates Star Rating
Our proprietary 1-to-5 health rating combining a credit union's Texas Ratio, net worth ratio, and aggregated member reviews on monitorbankrates.com. The financial component starts at 5.0 and is reduced for elevated Texas Ratio and below-target net worth ratio. Where reviews exist, financial score weighs 70% and reviews 30%.
NCUA (National Credit Union Administration)
The independent federal agency that charters and regulates federal credit unions and administers the National Credit Union Share Insurance Fund. Functionally, the credit union equivalent of the FDIC for banks. NCUA is funded by credit unions themselves, not taxpayer dollars.
Net Worth
A credit union's accumulated retained earnings — analogous to equity capital at a bank. Net worth is the primary cushion that absorbs loan losses before depositor funds are at risk. Federal regulations require a minimum 7.0% net worth ratio (net worth divided by total assets) to be considered "well capitalized."
Other Real Estate Owned (OREO)
Real estate the credit union has acquired through foreclosure on defaulted loans. OREO ties up capital that would otherwise support lending, and is typically sold at a loss relative to the original loan balance. OREO is part of the Texas Ratio numerator.
Share Insurance (NCUSIF)
The National Credit Union Share Insurance Fund insures member deposits at federally insured credit unions up to $250,000 per ownership category, per institution. Coverage is identical to FDIC insurance for banks and is backed by the full faith and credit of the United States government. Every credit union on this ranking is federally insured.
Texas Ratio
A measure of financial institution health that compares non-performing assets (delinquent loans plus other real estate owned) to available capital (net worth plus loan loss reserves). Lower is healthier. Developed by RBC Capital Markets analysts in the 1980s. Industry analysts have historically used 100% as a warning threshold; institutions on this list are at or under 0.34%.
