Safe and Sound

WASHINGTON COUNTY TEACHERS

Hagerstown, MD
4
Star Rating
WASHINGTON COUNTY TEACHERS is an NCUA-insured credit union founded in 1949 and currently headquartered in Hagerstown, MD. Regulatory filings show the credit union having $66.1 million in assets, as of December 31, 2017.

Thanks to the work of 9 full-time employees, the credit union currently holds loans and leases worth $24.2 million. Its 4,147 members currently have $57.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WASHINGTON COUNTY TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during times of financial trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

WASHINGTON COUNTY TEACHERS beat out the national average of 15.65 points on our test to measure capital adequacy, racking up 18 out of a possible 30 points.

WASHINGTON COUNTY TEACHERS appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, decreasing 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 lower earnings and potentially more risk of a future failure.

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

WASHINGTON COUNTY TEACHERS's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

WASHINGTON COUNTY TEACHERS scored 6 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than its peers in this area.

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.