Safe and Sound

WALTON COUNTY TEACHERS

DEFUNIAK SPRING, FL
3
Star Rating
WALTON COUNTY TEACHERS is an NCUA-insured credit union founded in 1961 and currently headquartered in DEFUNIAK SPRING, FL. The credit union holds $21.8 million in assets, according to December 31, 2017, regulatory filings.

Members have $8.6 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $8.6 million. Its 3,293 members currently have $20.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WALTON COUNTY TEACHERS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial resilience, capital is key. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, WALTON COUNTY TEACHERS received a score of 6 out of a possible 30 points, below the national average of 15.65.

WALTON COUNTY TEACHERS's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets may eventually require a credit union 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

WALTON COUNTY TEACHERS scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

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

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, WALTON COUNTY TEACHERS scored 12 out of a possible 30, beating the national average of 10.11.

One sign that the credit union 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.