Safe and Sound

AVOYELLES PARISH SCH BRD EMP

MARKSVILLE, LA
4
Star Rating
AVOYELLES PARISH SCH BRD EMP is a Marksville, LA-based, NCUA-insured credit union dating back to 1966. As of December 31, 2017, the credit union held assets of $2.6 million.

Members have $610,720 on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $610,720. AVOYELLES PARISH SCH BRD EMP's 455 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AVOYELLES PARISH SCH BRD EMP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It acts as a cushion against losses and as protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

AVOYELLES PARISH SCH BRD EMP achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

AVOYELLES PARISH SCH BRD EMP appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

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 past-due loans.

Having lots of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

AVOYELLES PARISH SCH BRD EMP scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

Troubled assets made up 0.00 percent of AVOYELLES PARISH SCH BRD EMP's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

AVOYELLES PARISH SCH BRD EMP underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that AVOYELLES PARISH SCH BRD EMP is beating its peers in this area was its earnings ratio of 0.00 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.