Safe and Sound

ANECA

SHREVEPORT, LA
4
Star Rating
Founded in 1939, ANECA is an NCUA-insured credit union based in SHREVEPORT, LA. Regulatory filings show the credit union having assets of $106.2 million, as of June 30, 2017.

Thanks to the work of 27 full-time employees, the credit union has amassed loans and leases worth $84.0 million. Its 6,499 members currently have $77.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ANECA 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 important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ANECA racked up 26 out of a possible 30 points, beating out the national average of 15.26.

ANECA's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these types of assets means a credit union may eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

ANECA scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.

A greater-than-average ratio of troubled assets of 8.00 percent in our test was something to watch for ANECA.

Earnings score

A credit union's ability to earn money affects 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 able to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

ANECA underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

ANECA had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with 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.