Safe and Sound

CLEVELAND-BRADLEY CTY TEACHER

CLEVELAND, TN
4
Star Rating
CLEVELAND-BRADLEY CTY TEACHER is an NCUA-insured credit union founded in 1961 and currently headquartered in CLEVELAND, TN. The credit union has assets of $50.4 million, according to December 31, 2017, regulatory filings.

With 10 full-time employees, the credit union currently holds loans and leases worth $18.6 million. Its 4,109 members currently have $44.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CLEVELAND-BRADLEY CTY TEACHER 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 major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is crucial. It works as a cushion against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, CLEVELAND-BRADLEY CTY TEACHER achieved a score of 16 out of a possible 30 points, beating out the national average of 15.65.

CLEVELAND-BRADLEY CTY TEACHER had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these types of assets could eventually be required to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, CLEVELAND-BRADLEY CTY TEACHER scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A lower-than-average ratio of troubled 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 ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially 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, CLEVELAND-BRADLEY CTY TEACHER scored 6 out of a possible 30, 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, a sign 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.