Safe and Sound

TOBACCO VALLEY TEACHERS

Enfield, CT
4
Star Rating
Started in 1936, TOBACCO VALLEY TEACHERS is an NCUA-insured credit union headquartered in Enfield, CT. Regulatory filings show the credit union having $46.3 million in assets, as of December 31, 2017.

Thanks to the efforts of 7 full-time employees, the credit union currently holds loans and leases worth $18.1 million. Its 3,966 members currently have $42.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOBACCO VALLEY TEACHERS exhibited a good condition, earning 4 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an a credit union's financial stability, capital is essential. 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, TOBACCO VALLEY TEACHERS received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

TOBACCO VALLEY TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

TOBACCO VALLEY TEACHERS scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of TOBACCO VALLEY TEACHERS's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

TOBACCO VALLEY TEACHERS scored 10 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that TOBACCO VALLEY TEACHERS is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.