Safe and Sound

CSE

LAKE CHARLES, LA
4
Star Rating
Started in 1943, CSE is an NCUA-insured credit union based in LAKE CHARLES, LA. Regulatory filings show the credit union having $302.0 million in assets, as of June 30, 2017.

With 88 full-time employees, the credit union has amassed loans and leases worth $217.2 million. CSE's 30,242 members currently have $260.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CSE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is useful. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, CSE achieved a score of 16 out of a possible 30 points, exceeding the national average of 15.26.

CSE had a capitalization ratio of 13.00 percent in our test, the same as the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

This test is intended to try to understand 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 extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 4.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, CSE scored 12 out of a possible 30, better than the national average of 10.31.

CSE had an earnings ratio of 5.00 percent in our test, better than the average for all credit unions, suggesting 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.