Safe and Sound

COOPERATIVE TEACHERS

Tyler, TX
4
Star Rating
Tyler, TX-based COOPERATIVE TEACHERS is an NCUA-insured credit union founded in 1953. Regulatory filings show the credit union having $114.8 million in assets, as of June 30, 2017.

Members have $81.6 million on deposit tended by 18 full-time employees. With that footprint, the credit union holds loans and leases worth $81.6 million. COOPERATIVE TEACHERS's 6,132 members currently have $74.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COOPERATIVE TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is essential. When looking at safety and soundness, more capital is better.

COOPERATIVE TEACHERS received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

COOPERATIVE TEACHERS's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, COOPERATIVE TEACHERS scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

Troubled assets made up 1.00 percent of COOPERATIVE TEACHERS's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, COOPERATIVE TEACHERS scored 12 out of a possible 30, beating out the national average of 10.31.

COOPERATIVE TEACHERS had an earnings ratio of 6.00 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.