Safe and Sound

KEMBA PEORIA

PEORIA, IL
4
Star Rating
PEORIA, IL-based KEMBA PEORIA is an NCUA-insured credit union founded in 1934. Regulatory filings show the credit union having $9.4 million in assets, as of December 31, 2017.

Members have $6.3 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.3 million. Its 1,579 members currently have $8.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KEMBA PEORIA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

KEMBA PEORIA achieved a score of 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

KEMBA PEORIA's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be 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.

KEMBA PEORIA exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

KEMBA PEORIA scored 8 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that KEMBA PEORIA 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.