Safe and Sound

TELCO COMMUNITY CREDIT UNION

ASHEVILLE, NC
4
Star Rating
TELCO COMMUNITY CREDIT UNION is an NCUA-insured credit union started in 1935 and currently headquartered in ASHEVILLE, NC. Regulatory filings show the credit union having assets of $178.5 million, as of December 31, 2017.

Thanks to the efforts of 53 full-time employees, the credit union currently holds loans and leases worth $123.0 million. Its 27,040 members currently have $159.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TELCO COMMUNITY CREDIT UNION 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 key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is valuable. It acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

TELCO COMMUNITY CREDIT UNION finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

TELCO COMMUNITY CREDIT UNION appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

TELCO COMMUNITY CREDIT UNION scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

TELCO COMMUNITY CREDIT UNION scored 20 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

TELCO COMMUNITY CREDIT UNION had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.