Safe and Sound

NORTHLAND TEACHERS COMMUNITY

Gladstone, MO
4
Star Rating
NORTHLAND TEACHERS COMMUNITY is an NCUA-insured credit union started in 1934 and currently headquartered in Gladstone, MO. As of December 31, 2017, the credit union held assets of $9.9 million.

Members have $2.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.9 million. Its 1,577 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHLAND TEACHERS COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

NORTHLAND TEACHERS COMMUNITY did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

NORTHLAND TEACHERS COMMUNITY appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, better 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 unpaid loans.

A credit union with lots of these types of assets could eventually have to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

NORTHLAND TEACHERS COMMUNITY beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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 affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

NORTHLAND TEACHERS COMMUNITY fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that NORTHLAND TEACHERS COMMUNITY is running ahead of 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.