Safe and Sound

TOLEDO TEAMSTERS

TOLEDO, OH
2
Star Rating
TOLEDO TEAMSTERS is a TOLEDO, OH-based, NCUA-insured credit union dating back to 1946. As of June 30, 2017, the credit union had assets of $4.4 million.

Members have $2.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.0 million. Its 1,015 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TOLEDO TEAMSTERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, TOLEDO TEAMSTERS received a score of 0 out of a possible 30 points, failing to reach the national average of 15.26.

TOLEDO TEAMSTERS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 5.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

TOLEDO TEAMSTERS finished below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

An above-average ratio of troubled assets of 8.00 percent in our test was something to keep an eye on for TOLEDO TEAMSTERS.

Earnings score

How successful a credit union is at making money 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.

TOLEDO TEAMSTERS scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

One sign that TOLEDO TEAMSTERS is underperforming its peers in this area was its earnings ratio of -9.00 percent in our test, worse 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.