Safe and Sound

FANNIN COUNTY TEACHERS

BONHAM, TX
5
Star Rating
FANNIN COUNTY TEACHERS is a BONHAM, TX-based, NCUA-insured credit union that opened its doors in 1969. Regulatory filings show the credit union having $9.1 million in assets, as of June 30, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $6.8 million. FANNIN COUNTY TEACHERS's 1,122 members currently have $7.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FANNIN COUNTY TEACHERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, FANNIN COUNTY TEACHERS scored 30 out of a possible 30 points, above the national average of 15.26.

FANNIN COUNTY TEACHERS appears to be more resilient than its peers, with a capitalization ratio of 21.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

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

A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, FANNIN COUNTY TEACHERS scored 12 out of a possible 30, better than the national average of 10.31.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 5.00 percent in our test, above the average for all credit unions.

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.