Safe and Sound

TELCO PLUS

Longview, TX
4
Star Rating
TELCO PLUS is a Longview, TX-based, NCUA-insured credit union founded in 1951. The credit union holds assets of $62.6 million, according to December 31, 2017, regulatory filings.

Members have $33.5 million on deposit tended by 23 full-time employees. With that footprint, the credit union holds loans and leases worth $33.5 million. TELCO PLUS's 8,035 members currently have $53.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TELCO PLUS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

TELCO PLUS did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

TELCO PLUS appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets suggests a credit union could have to use capital to cover losses, reducing 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 money, decreasing earnings and increasing the risk of a failure in the future.

TELCO PLUS beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of TELCO PLUS's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

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

TELCO PLUS scored 8 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

TELCO PLUS had an earnings ratio of 0.00 percent in our test, higher 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.