Safe and Sound

TRENTON TEACHERS

TRENTON, NJ
3
Star Rating
Started in 1938, TRENTON TEACHERS is an NCUA-insured credit union based in TRENTON, NJ. The credit union has $2.5 million in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $431,841. Its 531 members currently have $2.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRENTON TEACHERS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important 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 stability, capital is key. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, TRENTON TEACHERS received a score of 12 out of a possible 30 points, falling short of the national average of 15.65.

TRENTON TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on 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 increasing the chances of a future failure.

On Bankrate's asset quality test, TRENTON TEACHERS scored 32 out of a possible 40 points, failing to reach 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

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, TRENTON TEACHERS scored 2 out of a possible 30, coming in below the national average of 10.11.

One indication that TRENTON TEACHERS is doing better than 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.