Safe and Sound

GTE

TAMPA, FL
3
Star Rating
GTE is an NCUA-insured credit union started in 1935 and currently headquartered in TAMPA, FL. The credit union holds assets of $1.98 billion, according to December 31, 2017, regulatory filings.

With 447 full-time employees, the credit union has amassed loans and leases worth $1.67 billion. GTE's 260,051 members currently have $1.81 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GTE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a buffer against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

GTE received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

GTE had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, cutting down on 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, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, GTE scored 32 out of a possible 40 points, lower than 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

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

GTE received above-average marks on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

GTE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.