Safe and Sound

S. C. TELCO

GREENVILLE, SC
4
Star Rating
Founded in 1935, S. C. TELCO is an NCUA-insured credit union headquartered in GREENVILLE, SC. The credit union holds assets of $367.5 million, according to December 31, 2017, regulatory filings.

With 119 full-time employees, the credit union holds loans and leases worth $290.2 million. S. C. TELCO's 57,807 members currently have $317.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, S. C. TELCO 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 important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a bulwark against losses and as protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, S. C. TELCO received a score of 14 out of a possible 30 points, falling short of the national average of 15.65.

S. C. TELCO had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, S. C. TELCO scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

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

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

S. C. TELCO received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One sign that S. C. TELCO is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.