Safe and Sound

TEAMSTERS LOCAL 697

Wheeling, WV
4
Star Rating
Wheeling, WV-based TEAMSTERS LOCAL 697 is an NCUA-insured credit union founded in 1972. Regulatory filings show the credit union having assets of $2.3 million, as of December 31, 2017.

TEAMSTERS LOCAL 697's 521 members currently have $2.0 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.3 million.

Overall, Bankrate believes that, as of December 31, 2017, TEAMSTERS LOCAL 697 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TEAMSTERS LOCAL 697 racked up 16 out of a possible 30 points, better than the national average of 15.65.

TEAMSTERS LOCAL 697's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with a large number of these types of assets may eventually be required 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 elevating the chances of a future failure.

On Bankrate's test of asset quality, TEAMSTERS LOCAL 697 scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A below-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 has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

TEAMSTERS LOCAL 697 fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.