Safe and Sound

CHEROKEE COUNTY TEACHERS

RUSK, TX
4
Star Rating
Founded in 1955, CHEROKEE COUNTY TEACHERS is an NCUA-insured credit union based in RUSK, TX. Regulatory filings show the credit union having $13.0 million in assets, as of December 31, 2017.

With 4 full-time employees, the credit union currently holds loans and leases worth $7.3 million. Its 2,073 members currently have $10.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEROKEE COUNTY TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial stability, capital is crucial. When it comes to safety and soundness, more capital is preferred.

CHEROKEE COUNTY TEACHERS scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 26 out of a possible 30 points.

CHEROKEE COUNTY TEACHERS's capitalization ratio of 26.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets suggests a credit union may eventually have 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, resulting in reduced earnings and potentially more risk of a future failure.

CHEROKEE COUNTY TEACHERS scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

CHEROKEE COUNTY TEACHERS scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of its peers in this area.

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.