Safe and Sound

167TH TFR

Martinsburg, WV
3
Star Rating
167TH TFR is an NCUA-insured credit union founded in 1959 and currently headquartered in Martinsburg, WV. The credit union holds assets of $51.3 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 13 full-time employees, the credit union holds loans and leases worth $12.7 million. 167TH TFR's 9,686 members currently have $46.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 167TH TFR exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, 167TH TFR received a score of 8 out of a possible 30 points, lower than the national average of 15.26.

167TH TFR's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, decreasing its equity buffer. 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, resulting in reduced earnings and potentially more risk of a future failure.

167TH TFR scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

Troubled assets made up 5.00 percent of the credit union's total assets in our test, below the national average and suggestive 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. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

167TH TFR did below-average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

167TH TFR had an earnings ratio of 2.00 percent in our test, higher than 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.