Safe and Sound

ST. JOSEPH TEACHERS'

SAINT JOSEPH, MO
3
Star Rating
ST. JOSEPH TEACHERS' is a SAINT JOSEPH, MO-based, NCUA-insured credit union founded in 1931. The credit union has $8.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $3.0 million. ST. JOSEPH TEACHERS''s 1,395 members currently have $7.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. JOSEPH TEACHERS' exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, ST. JOSEPH TEACHERS' received a score of 6 out of a possible 30 points, failing to reach the national average of 15.65.

ST. JOSEPH TEACHERS' had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, decreasing 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 reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ST. JOSEPH TEACHERS' scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, ST. JOSEPH TEACHERS' scored 6 out of a possible 30, falling short of the national average of 10.11.

ST. JOSEPH TEACHERS' had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.