Safe and Sound

TEL-U-WATT

Minot, ND
3
Star Rating
Founded in 1935, TEL-U-WATT is an NCUA-insured credit union headquartered in Minot, ND. The credit union has $5.1 million in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $3.0 million. TEL-U-WATT's 416 members currently have $4.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEL-U-WATT 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 did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial strength. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

TEL-U-WATT came in below the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

TEL-U-WATT had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test 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 lots 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, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, TEL-U-WATT 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 long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

TEL-U-WATT scored 2 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

TEL-U-WATT had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.