Safe and Sound

K C K FIREMEN & POLICE

Kansas City, KS
5
Star Rating
Kansas City, KS-based K C K FIREMEN & POLICE is an NCUA-insured credit union started in 1949. As of December 31, 2017, the credit union held assets of $14.5 million.

With 3 full-time employees, the credit union has amassed loans and leases worth $8.2 million. Its 1,949 members currently have $11.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, K C K FIREMEN & POLICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important 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

When it comes to measuring an institution's financial strength, capital is important. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

K C K FIREMEN & POLICE racked up 26 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

K C K FIREMEN & POLICE appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, diminishing its equity buffer. 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 reduced earnings and potentially more risk of a future failure.

K C K FIREMEN & POLICE did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

K C K FIREMEN & POLICE fell short of the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.