Safe and Sound

KNOX CO. EMPLOYEES

KNOXVILLE, TN
5
Star Rating
KNOX CO. EMPLOYEES is a KNOXVILLE, TN-based, NCUA-insured credit union dating back to 1974. The credit union has $9.2 million in assets, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union currently holds loans and leases worth $4.9 million. KNOX CO. EMPLOYEES's 1,536 members currently have $7.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KNOX CO. EMPLOYEES exhibited a superior condition, earning a full 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 U.S. credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

KNOX CO. EMPLOYEES did better than the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 26 out of a possible 30 points.

KNOX CO. EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually be required to use capital to absorb losses, shrinking 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, pushing down earnings and increasing the risk of a future failure.

KNOX CO. EMPLOYEES beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, KNOX CO. EMPLOYEES scored 6 out of a possible 30, less than the national average of 10.11.

One indication that KNOX CO. EMPLOYEES is outperforming 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.