Safe and Sound

CAMBRIDGE TEACHERS

CAMBRIDGE, MA
3
Star Rating
CAMBRIDGE, MA-based CAMBRIDGE TEACHERS is an NCUA-insured credit union founded in 1939. Regulatory filings show the credit union having assets of $31.1 million, as of December 31, 2017.

With 5 full-time employees, the credit union has amassed loans and leases worth $7.9 million. Its 2,135 members currently have $27.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAMBRIDGE TEACHERS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

CAMBRIDGE TEACHERS came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

CAMBRIDGE 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, worse than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

CAMBRIDGE TEACHERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of CAMBRIDGE TEACHERS's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, CAMBRIDGE TEACHERS scored 2 out of a possible 30, less than the national average of 10.11.

One sign that CAMBRIDGE TEACHERS is doing better than its peers in this area was its earnings ratio of 0.00 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.