Safe and Sound

ARKANSAS TEACHERS

LIttle Rock, AR
NR
Star Rating
LIttle Rock, AR-based ARKANSAS TEACHERS is an NCUA-insured credit union founded in 1958. The credit union has assets of $1.2 million, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $832,737. ARKANSAS TEACHERS's 477 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

ARKANSAS TEACHERS fell below the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

ARKANSAS TEACHERS appears to be on less solid financial footing 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 try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, ARKANSAS TEACHERS scored 32 out of a possible 40 points, coming in below the national average of 38.09 points.

Troubled assets made up 0.00 percent of ARKANSAS TEACHERS's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ARKANSAS TEACHERS scored 0 out of a possible 30, below the national average of 10.11.

One sign that ARKANSAS TEACHERS is doing better than its peers in this area was its earnings ratio of -1.00 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.