Safe and Sound

KNOXVILLE LAW ENFORCEMENT

KNOXVILLE, TN
4
Star Rating
Started in 1957, KNOXVILLE LAW ENFORCEMENT is an NCUA-insured credit union based in KNOXVILLE, TN. Regulatory filings show the credit union having assets of $26.2 million, as of December 31, 2017.

Members have $12.8 million on deposit tended by 8 full-time employees. With that footprint, the credit union currently holds loans and leases worth $12.8 million. KNOXVILLE LAW ENFORCEMENT's 1,655 members currently have $22.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KNOXVILLE LAW ENFORCEMENT 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is useful. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, KNOXVILLE LAW ENFORCEMENT racked up 20 out of a possible 30 points, better than the national average of 15.65.

KNOXVILLE LAW ENFORCEMENT had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could eventually have to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, KNOXVILLE LAW ENFORCEMENT scored 40 out of a possible 40 points, exceeding the national average of 38.09 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

A credit union's earnings performance 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 better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, KNOXVILLE LAW ENFORCEMENT scored 6 out of a possible 30, less than the national average of 10.11.

KNOXVILLE LAW ENFORCEMENT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.