Safe and Sound

C-F LA.

DONALDSONVILLE, LA
4
Star Rating
DONALDSONVILLE, LA-based C-F LA. is an NCUA-insured credit union founded in 1977. Regulatory filings show the credit union having $9.2 million in assets, as of December 31, 2017.

Its 1,187 members currently have $8.0 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $4.2 million.

Overall, Bankrate believes that, as of December 31, 2017, C-F LA. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It acts as a bulwark against losses and affords protection for members during times of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

C-F LA. scored 16 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.

C-F LA.'s capitalization ratio of 16.00 percent in our test puts it right in line with 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 troubled assets, such as past-due mortgages.

Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, shrinking its equity buffer. 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 lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, C-F LA. scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, C-F LA. scored 8 out of a possible 30, less than the national average of 10.11.

One sign that C-F LA. is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.