Safe and Sound

K.U.M.C.

Kansas City, KS
4
Star Rating
Started in 1954, K.U.M.C. is an NCUA-insured credit union based in Kansas City, KS. Regulatory filings show the credit union having $27.7 million in assets, as of December 31, 2017.

Thanks to the work of 7 full-time employees, the credit union holds loans and leases worth $5.6 million. K.U.M.C.'s 2,584 members currently have $25.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, K.U.M.C. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

K.U.M.C. came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

K.U.M.C. 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 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.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on 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 failure in the future.

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

A lower-than-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 has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, K.U.M.C. scored 10 out of a possible 30, coming in below the national average of 10.11.

One sign that K.U.M.C. is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.