Safe and Sound

KINGS PEAK

Roosevelt, UT
1
Star Rating
KINGS PEAK is an NCUA-insured credit union started in 1960 and currently based in Roosevelt, UT. Regulatory filings show the credit union having assets of $14.4 million, as of December 31, 2017.

With 6 full-time employees, the credit union currently holds loans and leases worth $11.8 million. Its 2,009 members currently have $12.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KINGS PEAK exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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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 cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

KINGS PEAK scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 4 out of a possible 30 points.

KINGS PEAK's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having lots of these kinds of assets may eventually require a credit union to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

KINGS PEAK scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 16 out of a possible 40 points .

KINGS PEAK's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, KINGS PEAK scored 4 out of a possible 30, falling short of the national average of 10.11.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.