Safe and Sound

TENNESSEE RIVER

COUNCE, TN
5
Star Rating
Started in 1961, TENNESSEE RIVER is an NCUA-insured credit union headquartered in COUNCE, TN. The credit union holds $19.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $9.6 million. TENNESSEE RIVER's 1,775 members currently have $15.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TENNESSEE RIVER exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the higher the capital, the better.

TENNESSEE RIVER scored 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

TENNESSEE RIVER's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

TENNESSEE RIVER exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

TENNESSEE RIVER's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

TENNESSEE RIVER scored 8 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

TENNESSEE RIVER had an earnings ratio of 0.00 percent in our test, higher than 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.