Safe and Sound

EPB EMPLOYEES

CHATTANOOGA, TN
3
Star Rating
Founded in 1954, EPB EMPLOYEES is an NCUA-insured credit union headquartered in CHATTANOOGA, TN. The credit union holds assets of $28.8 million, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union holds loans and leases worth $11.9 million. EPB EMPLOYEES's 2,339 members currently have $25.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EPB EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

EPB EMPLOYEES fell below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

EPB EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to absorb 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, decreasing earnings and increasing the chances of a future failure.

EPB EMPLOYEES scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

EPB EMPLOYEES did below-average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

EPB EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.