Safe and Sound

KINGSTON TVA EMPLOYEES

Harriman, TN
5
Star Rating
Harriman, TN-based KINGSTON TVA EMPLOYEES is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having assets of $2.1 million, as of December 31, 2017.

KINGSTON TVA EMPLOYEES's 526 members currently have $1.6 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.5 million.

Overall, Bankrate believes that, as of December 31, 2017, KINGSTON TVA EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure the adequacy of a credit union's capital, KINGSTON TVA EMPLOYEES scored 30 out of a possible 30 points, beating the national average of 15.65.

KINGSTON TVA EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to cover losses, diminishing its equity cushion. 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 lower earnings and potentially more risk of a future failure.

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

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

KINGSTON TVA EMPLOYEES underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

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.