Safe and Sound

SHAWNEE TVA EMPLOYEES

WEST PADUCAH, KY
5
Star Rating
SHAWNEE TVA EMPLOYEES is an NCUA-insured credit union founded in 1954 and currently based in WEST PADUCAH, KY. As of December 31, 2017, the credit union had assets of $6.4 million.

SHAWNEE TVA EMPLOYEES's 707 members currently have $5.2 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $3.1 million.

Overall, Bankrate believes that, as of December 31, 2017, SHAWNEE TVA EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of 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

When it comes to measuring an institution's financial fortitude, capital is valuable. It works as a bulwark against losses and affords protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

SHAWNEE TVA EMPLOYEES scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 26 out of a possible 30 points.

SHAWNEE TVA EMPLOYEES's capitalization ratio of 26.00 percent in our test was above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets means a credit union may eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

SHAWNEE TVA EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

SHAWNEE TVA EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.