Safe and Sound

TORRINGTON MUNICIPAL AND TEACHERS

TORRINGTON, CT
4
Star Rating
TORRINGTON MUNICIPAL AND TEACHERS is a TORRINGTON, CT-based, NCUA-insured credit union dating back to 1960. The credit union holds $46.7 million in assets, according to December 31, 2017, regulatory filings.

With 13 full-time employees, the credit union holds loans and leases worth $23.5 million. Its 9,679 members currently have $42.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TORRINGTON MUNICIPAL AND TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

TORRINGTON MUNICIPAL AND TEACHERS fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

TORRINGTON MUNICIPAL AND TEACHERS had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be forced 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 money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, TORRINGTON MUNICIPAL AND TEACHERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

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

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

TORRINGTON MUNICIPAL AND TEACHERS outperformed the average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.