Safe and Sound

KLAMATH PUBLIC EMPLOYEES

KLAMATH FALLS, OR
4
Star Rating
Founded in 1949, KLAMATH PUBLIC EMPLOYEES is an NCUA-insured credit union headquartered in KLAMATH FALLS, OR. Regulatory filings show the credit union having assets of $39.9 million, as of December 31, 2017.

Thanks to the efforts of 9 full-time employees, the credit union currently holds loans and leases worth $19.9 million. KLAMATH PUBLIC EMPLOYEES's 4,414 members currently have $36.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KLAMATH PUBLIC EMPLOYEES exhibited a good condition, earning 4 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is crucial. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, KLAMATH PUBLIC EMPLOYEES received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

KLAMATH PUBLIC EMPLOYEES had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, KLAMATH PUBLIC EMPLOYEES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of KLAMATH PUBLIC EMPLOYEES's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

KLAMATH PUBLIC EMPLOYEES scored 10 out of a possible 30 on Bankrate's test of earnings, below 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, 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.