Safe and Sound

COOPERATIVE TEACHERS

Tyler, TX
4
Star Rating
COOPERATIVE TEACHERS is a Tyler, TX-based, NCUA-insured credit union dating back to 1953. Regulatory filings show the credit union having $117.4 million in assets, as of December 31, 2017.

Thanks to the work of 21 full-time employees, the credit union currently holds loans and leases worth $86.1 million. COOPERATIVE TEACHERS's 6,217 members currently have $74.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COOPERATIVE TEACHERS 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is crucial. When it comes to safety and soundness, more capital is better.

COOPERATIVE TEACHERS received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

COOPERATIVE TEACHERS's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, COOPERATIVE TEACHERS scored 40 out of a possible 40 points, above the national average of 38.09 points.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

COOPERATIVE TEACHERS did above-average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.