Safe and Sound

OAK POINT EMPLOYEES

BELLE CHASSE, LA
5
Star Rating
OAK POINT EMPLOYEES is an NCUA-insured credit union started in 1954 and currently headquartered in BELLE CHASSE, LA. As of June 30, 2017, the credit union held assets of $9.6 million.

The credit union has amassed loans and leases worth $7.0 million. OAK POINT EMPLOYEES's 686 members currently have $6.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OAK POINT EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, OAK POINT EMPLOYEES achieved a score of 30 out of a possible 30 points, above the national average of 15.26.

OAK POINT EMPLOYEES's capitalization ratio of 34.00 percent in our test was better than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended 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 unpaid mortgages.

Having a large number of these types of assets means a credit union could have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

OAK POINT EMPLOYEES scored above the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 6.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, OAK POINT EMPLOYEES scored 16 out of a possible 30, beating out the national average of 10.31.

One indication that OAK POINT EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 7.00 percent in our test, better than the average for all credit unions.








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.