Safe and Sound

COMMUNITY & TEACHERS

East Providence, RI
4
Star Rating
East Providence, RI-based COMMUNITY & TEACHERS is an NCUA-insured credit union founded in 1961. The credit union has assets of $26.9 million, according to December 31, 2017, regulatory filings.

Members have $18.0 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $18.0 million. COMMUNITY & TEACHERS's 2,285 members currently have $24.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY & TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, COMMUNITY & TEACHERS received a score of 6 out of a possible 30 points, less than the national average of 15.65.

COMMUNITY & TEACHERS's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to absorb losses, decreasing its cushion 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 failure in the future.

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

COMMUNITY & TEACHERS's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than 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 address problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

COMMUNITY & TEACHERS fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One sign that COMMUNITY & TEACHERS is beating 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.