Safe and Sound

TEACHERS

BELOIT, WI
4
Star Rating
BELOIT, WI-based TEACHERS is an NCUA-insured credit union founded in 1934. As of December 31, 2017, the credit union held assets of $22.7 million.

Thanks to the work of 5 full-time employees, the credit union has amassed loans and leases worth $7.3 million. Its 2,084 members currently have $19.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important 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 acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TEACHERS racked up 20 out of a possible 30 points, better than the national average of 15.65.

TEACHERS appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

TEACHERS scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

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