Safe and Sound

BATON ROUGE CITY PARISH EMP

BATON ROUGE, LA
5
Star Rating
Started in 1949, BATON ROUGE CITY PARISH EMP is an NCUA-insured credit union based in BATON ROUGE, LA. The credit union holds $49.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $21.2 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $21.2 million. BATON ROUGE CITY PARISH EMP's 6,344 members currently have $41.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BATON ROUGE CITY PARISH EMP exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade 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 cushion against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

BATON ROUGE CITY PARISH EMP scored above the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 24 out of a possible 30 points.

BATON ROUGE CITY PARISH EMP appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking its equity buffer. 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, reducing earnings and increasing the chances of a future failure.

BATON ROUGE CITY PARISH EMP scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Troubled assets made up 0.00 percent of BATON ROUGE CITY PARISH EMP's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

BATON ROUGE CITY PARISH EMP scored 8 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

BATON ROUGE CITY PARISH EMP had an earnings ratio of 0.00 percent in our test, better 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.