Safe and Sound

TECHNOLOGY

SAN JOSE, CA
5
Star Rating
TECHNOLOGY is an NCUA-insured credit union founded in 1960 and currently headquartered in SAN JOSE, CA. As of June 30, 2017, the credit union held assets of $2.40 billion.

With 227 full-time employees, the credit union currently holds loans and leases worth $1.79 billion. TECHNOLOGY's 88,289 members currently have $2.05 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TECHNOLOGY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It works as a buffer against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

TECHNOLOGY came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

TECHNOLOGY had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect 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.

Having lots of these kinds of assets means a credit union could eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

The credit union's ratio of problem assets was 1.00 percent in our test, less than the national average and 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. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially 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.

TECHNOLOGY outperformed the average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 12.00 percent in our test, better 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.