Safe and Sound

JACK DANIEL EMPLOYEES

LYNCHBURG, TN
5
Star Rating
JACK DANIEL EMPLOYEES is a LYNCHBURG, TN-based, NCUA-insured credit union that opened its doors in 1987. The credit union holds assets of $30.5 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 7 full-time employees, the credit union holds loans and leases worth $20.2 million. JACK DANIEL EMPLOYEES's 2,272 members currently have $27.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JACK DANIEL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

JACK DANIEL EMPLOYEES received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

JACK DANIEL EMPLOYEES appears to be weaker 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

Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

JACK DANIEL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

JACK DANIEL EMPLOYEES scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One sign that JACK DANIEL EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.