Safe and Sound

KNOXVILLE FIREFIGHTERS

KNOXVILLE, TN
4
Star Rating
Founded in 1954, KNOXVILLE FIREFIGHTERS is an NCUA-insured credit union based in KNOXVILLE, TN. Regulatory filings show the credit union having assets of $28.1 million, as of December 31, 2017.

Thanks to the efforts of 6 full-time employees, the credit union holds loans and leases worth $14.6 million. Its 1,583 members currently have $24.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KNOXVILLE FIREFIGHTERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial resilience. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is preferred.

KNOXVILLE FIREFIGHTERS racked up 20 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

KNOXVILLE FIREFIGHTERS appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be forced 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, resulting in diminished earnings and potentially more risk of a future failure.

KNOXVILLE FIREFIGHTERS scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

KNOXVILLE FIREFIGHTERS underperformed the average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

KNOXVILLE FIREFIGHTERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming its peers in this area.

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.