Safe and Sound

NEW HAVEN TEACHERS

New Haven, CT
5
Star Rating
Started in 1934, NEW HAVEN TEACHERS is an NCUA-insured credit union based in New Haven, CT. Regulatory filings show the credit union having assets of $9.4 million, as of December 31, 2017.

The credit union has amassed loans and leases worth $1.3 million. NEW HAVEN TEACHERS's 1,497 members currently have $6.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NEW HAVEN TEACHERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NEW HAVEN TEACHERS scored 30 out of a possible 30 points, above the national average of 15.65.

NEW HAVEN TEACHERS had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, NEW HAVEN TEACHERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

NEW HAVEN TEACHERS scored 2 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that the credit union is outperforming 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.