Safe and Sound

JEANNE D'ARC

Lowell, MA
4
Star Rating
JEANNE D'ARC is a Lowell, MA-based, NCUA-insured credit union that opened its doors in 1911. The credit union has assets of $1.30 billion, according to June 30, 2017, regulatory filings.

Members have $1.12 billion on deposit tended by 206 full-time employees. With that footprint, the credit union has amassed loans and leases worth $1.12 billion. Its 82,021 members currently have $1.11 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, JEANNE D'ARC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is useful. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, JEANNE D'ARC received a score of 8 out of a possible 30 points, lower than the national average of 15.26.

JEANNE D'ARC appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets means a credit union could eventually have to use capital to cover losses, decreasing 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, resulting in lower earnings and potentially more risk of a future failure.

JEANNE D'ARC scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

Troubled assets made up 6.00 percent of JEANNE D'ARC's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, JEANNE D'ARC scored 14 out of a possible 30, above the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.