Safe and Sound

TEAMSTERS LOCAL UNION #270

NEW ORLEANS, LA
4
Star Rating
Started in 1971, TEAMSTERS LOCAL UNION #270 is an NCUA-insured credit union headquartered in NEW ORLEANS, LA. Regulatory filings show the credit union having $774,250 in assets, as of December 31, 2017.

Its 492 members currently have $626,888 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $251,020.

Overall, Bankrate believes that, as of December 31, 2017, TEAMSTERS LOCAL UNION #270 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 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 is an essential measurement of an institution's financial resilience. It acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, TEAMSTERS LOCAL UNION #270 achieved a score of 28 out of a possible 30 points, exceeding the national average of 15.65.

TEAMSTERS LOCAL UNION #270 had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these types of assets could eventually be required 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 money, pushing down earnings and increasing the chances of a future failure.

TEAMSTERS LOCAL UNION #270 scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, TEAMSTERS LOCAL UNION #270 scored 4 out of a possible 30, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.