Safe and Sound

BATON ROUGE TELCO

Baton Rouge, LA
4
Star Rating
BATON ROUGE TELCO is an NCUA-insured credit union founded in 1936 and currently headquartered in Baton Rouge, LA. The credit union has assets of $296.1 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 66 full-time employees, the credit union holds loans and leases worth $254.7 million. BATON ROUGE TELCO's 27,595 members currently have $263.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BATON ROUGE TELCO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of financial instability for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

BATON ROUGE TELCO received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.26.

BATON ROUGE TELCO had a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

BATON ROUGE TELCO scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.15.

BATON ROUGE TELCO's ratio of problem assets was 9.00 percent in our test, exceeding the national average and something to watch.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

BATON ROUGE TELCO beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

BATON ROUGE TELCO had an earnings ratio of 6.00 percent in our test, above the average for all credit unions, suggesting 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.