Safe and Sound

GARDEN CITY TEACHERS

garden city, KS
2
Star Rating
Started in 1952, GARDEN CITY TEACHERS is an NCUA-insured credit union headquartered in garden city, KS. Regulatory filings show the credit union having assets of $12.5 million, as of December 31, 2017.

Thanks to the work of 5 full-time employees, the credit union holds loans and leases worth $6.6 million. GARDEN CITY TEACHERS's 2,025 members currently have $11.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GARDEN CITY TEACHERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

GARDEN CITY TEACHERS received a score of 4 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

GARDEN CITY TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having lots of these types of assets could eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

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

A below-average ratio of troubled 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 making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, GARDEN CITY TEACHERS scored 0 out of a possible 30, less than the national average of 10.11.

One indication that the credit union is doing better than 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.