Safe and Sound

KINGS

HANFORD, CA
4
Star Rating
HANFORD, CA-based KINGS is an NCUA-insured credit union started in 1955. The credit union holds $112.3 million in assets, according to June 30, 2017, regulatory filings.

Members have $80.2 million on deposit tended by 20 full-time employees. With that footprint, the credit union has amassed loans and leases worth $80.2 million. KINGS's 9,588 members currently have $95.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KINGS 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is preferred.

KINGS scored 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.26.

KINGS's capitalization ratio of 14.00 percent in our test was above the average for all credit unions, suggesting that it's stronger 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 a large number of these types of assets suggests a credit union may have to use capital to absorb losses, shrinking 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, decreasing earnings and increasing the chances of a future failure.

KINGS scored above the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

KINGS's ratio of troubled assets was 3.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

KINGS scored 8 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.