Safe and Sound

STATE AGENCIES

SHREVEPORT, LA
5
Star Rating
SHREVEPORT, LA-based STATE AGENCIES is an NCUA-insured credit union started in 1952. Regulatory filings show the credit union having $9.5 million in assets, as of June 30, 2017.

Members have $4.1 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.1 million. STATE AGENCIES's 885 members currently have $7.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, STATE AGENCIES 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial trouble for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, STATE AGENCIES racked up 30 out of a possible 30 points, beating out the national average of 15.26.

STATE AGENCIES's capitalization ratio of 25.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

STATE AGENCIES exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 2.00 percent of STATE AGENCIES's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, STATE AGENCIES scored 12 out of a possible 30, beating out the national average of 10.31.

One sign that STATE AGENCIES is outperforming its peers in this area was its earnings ratio of 5.00 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.