Safe and Sound

CHA-TEL

Charleston, WV
4
Star Rating
Charleston, WV-based CHA-TEL is an NCUA-insured credit union started in 1963. As of December 31, 2017, the credit union had assets of $10.9 million.

Members have $6.8 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $6.8 million. Its 1,560 members currently have $9.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHA-TEL 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 important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

CHA-TEL received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

CHA-TEL appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb 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 interest for the credit union, pushing down earnings and increasing the chances of a future failure.

CHA-TEL scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

Troubled assets made up 0.00 percent of CHA-TEL's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

CHA-TEL scored 16 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One sign that CHA-TEL is running ahead of its peers in this area was its earnings ratio of 0.00 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.