Safe and Sound

SANTA BARBARA TEACHERS

Santa Barbara, CA
4
Star Rating
Santa Barbara, CA-based SANTA BARBARA TEACHERS is an NCUA-insured credit union founded in 1937. The credit union has assets of $236.3 million, according to December 31, 2017, regulatory filings.

Members have $66.0 million on deposit tended by 20 full-time employees. With that footprint, the credit union has amassed loans and leases worth $66.0 million. SANTA BARBARA TEACHERS's 10,251 members currently have $210.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SANTA BARBARA TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

SANTA BARBARA TEACHERS fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 12 out of a possible 30 points.

SANTA BARBARA TEACHERS had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these types of assets means a credit union could eventually have to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, SANTA BARBARA TEACHERS scored 40 out of a possible 40 points, exceeding the national average of 38.09 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 making money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

SANTA BARBARA TEACHERS did above-average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that the credit union 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.