Safe and Sound

TEACHERS

SMITHTOWN, NY
4
Star Rating
SMITHTOWN, NY-based TEACHERS is an NCUA-insured credit union started in 1952. The credit union has $5.70 billion in assets, according to June 30, 2017, regulatory filings.

With 554 full-time employees, the credit union currently holds loans and leases worth $3.43 billion. TEACHERS's 281,098 members currently have $5.11 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It acts as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, TEACHERS received a score of 10 out of a possible 30 points, falling short of the national average of 15.26.

TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

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

TEACHERS beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

TEACHERS scored 14 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.31.

One sign that TEACHERS is doing better than its peers in this area was its earnings ratio of 7.00 percent in our test, higher than 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.