Safe and Sound

DAVIESS COUNTY TEACHERS

OWENSBORO, KY
4
Star Rating
DAVIESS COUNTY TEACHERS is an NCUA-insured credit union founded in 1971 and currently based in OWENSBORO, KY. The credit union holds assets of $42.0 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 12 full-time employees, the credit union holds loans and leases worth $30.6 million. Its 3,994 members currently have $37.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DAVIESS COUNTY TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at 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 when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial stability, capital is valuable. When it comes to safety and soundness, more capital is better.

DAVIESS COUNTY TEACHERS came in below the national average of 15.65 on our test to measure capital adequacy, racking up 12 out of a possible 30 points.

DAVIESS COUNTY TEACHERS had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

DAVIESS COUNTY TEACHERS's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, DAVIESS COUNTY TEACHERS scored 8 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.