Safe and Sound

TENNESSEE MEMBERS 1ST

OAK RIDGE, TN
3
Star Rating
TENNESSEE MEMBERS 1ST is an NCUA-insured credit union founded in 1946 and currently based in OAK RIDGE, TN. As of December 31, 2017, the credit union held assets of $82.4 million.

With 22 full-time employees, the credit union currently holds loans and leases worth $30.2 million. TENNESSEE MEMBERS 1ST's 4,759 members currently have $72.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TENNESSEE MEMBERS 1ST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, TENNESSEE MEMBERS 1ST received a score of 14 out of a possible 30 points, less than the national average of 15.65.

TENNESSEE MEMBERS 1ST's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

TENNESSEE MEMBERS 1ST fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

TENNESSEE MEMBERS 1ST's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

TENNESSEE MEMBERS 1ST underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

TENNESSEE MEMBERS 1ST had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.