Safe and Sound

KELLY COMMUNITY

Tyler, TX
5
Star Rating
Tyler, TX-based KELLY COMMUNITY is an NCUA-insured credit union started in 1963. Regulatory filings show the credit union having $100.2 million in assets, as of December 31, 2017.

With 40 full-time employees, the credit union holds loans and leases worth $80.0 million. Its 8,684 members currently have $87.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KELLY COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is valuable. From a safety and soundness perspective, the more capital, the better.

KELLY COMMUNITY racked up 16 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

KELLY COMMUNITY had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these types of assets may eventually be required to use capital to cover losses, decreasing 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, decreasing earnings and increasing the risk of a future failure.

KELLY COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

KELLY COMMUNITY's ratio of troubled assets was 0.00 percent in our test, beneath the national average and 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, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

KELLY COMMUNITY received above-average marks on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One sign that KELLY COMMUNITY is doing better than 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.