Safe and Sound

GREATER KENTUCKY CU, INC.

LEXINGTON, KY
4
Star Rating
LEXINGTON, KY-based GREATER KENTUCKY CU, INC. is an NCUA-insured credit union founded in 1953. The credit union holds assets of $77.5 million, according to December 31, 2017, regulatory filings.

With 23 full-time employees, the credit union holds loans and leases worth $62.8 million. Its 9,321 members currently have $60.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREATER KENTUCKY CU, INC. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial fortitude. It acts as a cushion against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

GREATER KENTUCKY CU, INC. scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

GREATER KENTUCKY CU, INC. appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with large numbers of these kinds of assets may eventually have 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 thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

GREATER KENTUCKY CU, INC. scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

GREATER KENTUCKY CU, INC. did above-average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

GREATER KENTUCKY CU, INC. had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.