Safe and Sound

WASHINGTON AREA TEACHERS

Washington, PA
2
Star Rating
WASHINGTON AREA TEACHERS is an NCUA-insured credit union founded in 1959 and currently headquartered in Washington, PA. As of December 31, 2017, the credit union held assets of $59.8 million.

Members have $24.6 million on deposit tended by 18 full-time employees. With that footprint, the credit union currently holds loans and leases worth $24.6 million. Its 4,032 members currently have $54.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WASHINGTON AREA TEACHERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

WASHINGTON AREA TEACHERS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

WASHINGTON AREA TEACHERS had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these types of assets means a credit union could have to use capital to cover losses, decreasing 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 failure in the future.

On Bankrate's asset quality test, WASHINGTON AREA TEACHERS scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A lower-than-average ratio of troubled 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

WASHINGTON AREA TEACHERS underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that the credit union is beating 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.