Safe and Sound

ENRICHMENT

OAK RIDGE, TN
4
Star Rating
OAK RIDGE, TN-based ENRICHMENT is an NCUA-insured credit union started in 1950. Regulatory filings show the credit union having assets of $458.9 million, as of December 31, 2017.

With 114 full-time employees, the credit union holds loans and leases worth $307.5 million. ENRICHMENT's 42,791 members currently have $409.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ENRICHMENT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

ENRICHMENT came in below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

ENRICHMENT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less 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 problem assets, such as unpaid mortgages.

Having lots of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its equity cushion. 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 depressed earnings and potentially more risk of a future failure.

ENRICHMENT beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of ENRICHMENT's total assets 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. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ENRICHMENT scored 12 out of a possible 30, above the national average of 10.11.

ENRICHMENT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.