Safe and Sound

SWEENY TEACHERS

Sweeny, TX
3
Star Rating
Founded in 1957, SWEENY TEACHERS is an NCUA-insured credit union based in Sweeny, TX. As of December 31, 2017, the credit union held assets of $3.0 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $1.7 million. SWEENY TEACHERS's 706 members currently have $2.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SWEENY 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 key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that an institution's level of capital is a useful measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

SWEENY TEACHERS received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

SWEENY TEACHERS's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, SWEENY TEACHERS scored 36 out of a possible 40 points, less than the national average of 38.09 points.

Troubled assets made up 0.00 percent of SWEENY TEACHERS's total assets in our test, below the national average and suggestive of superior financial strength compared to 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, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, SWEENY TEACHERS scored 0 out of a possible 30, below the national average of 10.11.

One sign that the credit union is beating 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.