Safe and Sound

OHIO TEAMSTERS

INDEPENDENCE, OH
5
Star Rating
OHIO TEAMSTERS is an NCUA-insured credit union started in 1940 and currently based in INDEPENDENCE, OH. Regulatory filings show the credit union having $13.3 million in assets, as of December 31, 2017.

Members have $5.8 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.8 million. OHIO TEAMSTERS's 4,243 members currently have $9.5 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, more capital is preferred.

OHIO TEAMSTERS racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

OHIO TEAMSTERS appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, OHIO TEAMSTERS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

OHIO TEAMSTERS's ratio of problem assets was 0.00 percent in our test, lower than the national average and 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. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, OHIO TEAMSTERS scored 2 out of a possible 30, failing to reach the national average of 10.11.

OHIO TEAMSTERS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.