Safe and Sound

INDEPENDENCE TEACHERS

Independence, MO
4
Star Rating
Founded in 1959, INDEPENDENCE TEACHERS is an NCUA-insured credit union based in Independence, MO. The credit union holds assets of $15.8 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $3.8 million. INDEPENDENCE TEACHERS's 1,934 members currently have $14.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDEPENDENCE TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key 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 provides protection for members during times of financial trouble for the credit union. It follows then that an institution's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, INDEPENDENCE TEACHERS received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

INDEPENDENCE TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets may eventually be required to use capital to cover losses, decreasing 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 future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, INDEPENDENCE TEACHERS scored 10 out of a possible 30, falling short of the national average of 10.11.

One indication that INDEPENDENCE TEACHERS is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.