Safe and Sound

NORTHEAST PANHANDLE TEACHERS

Perryton, TX
4
Star Rating
Founded in 1969, NORTHEAST PANHANDLE TEACHERS is an NCUA-insured credit union headquartered in Perryton, TX. As of December 31, 2017, the credit union had assets of $21.6 million.

Thanks to the efforts of 4 full-time employees, the credit union currently holds loans and leases worth $11.4 million. Its 2,600 members currently have $18.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHEAST PANHANDLE TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a cushion against losses and as protection for members during times of economic instability for the credit union. When it comes to safety and soundness, more capital is preferred.

NORTHEAST PANHANDLE TEACHERS scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 18 out of a possible 30 points.

NORTHEAST PANHANDLE TEACHERS appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of NORTHEAST PANHANDLE TEACHERS's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

NORTHEAST PANHANDLE TEACHERS fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign 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.