Safe and Sound

PELICAN STATE

BATON ROUGE, LA
5
Star Rating
Founded in 1956, PELICAN STATE is an NCUA-insured credit union headquartered in BATON ROUGE, LA. The credit union holds assets of $310.6 million, according to June 30, 2017, regulatory filings.

Members have $246.5 million on deposit tended by 221 full-time employees. With that footprint, the credit union has amassed loans and leases worth $246.5 million. PELICAN STATE's 44,628 members currently have $274.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PELICAN STATE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is key. When looking at safety and soundness, more capital is preferred.

PELICAN STATE fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

PELICAN STATE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

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 lots of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its buffer of equity. 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, decreasing earnings and increasing the chances of a future failure.

PELICAN STATE came in below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 9.00 percent of PELICAN STATE's total assets in our test, greater than the national average and something to watch.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, PELICAN STATE scored 26 out of a possible 30, above the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 16.00 percent in our test, above 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.