Safe and Sound

CABOT EMPLOYEES

Franklin, LA
5
Star Rating
Started in 1956, CABOT EMPLOYEES is an NCUA-insured credit union based in FRANKLIN, LA. The credit union holds assets of $1.7 million, according to December 31, 2017, regulatory filings.

Its 151 members currently have $1.3 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.0 million.

Overall, Bankrate believes that, as of December 31, 2017, CABOT EMPLOYEES 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 key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. 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, CABOT EMPLOYEES racked up 30 out of a possible 30 points, beating the national average of 15.65.

CABOT EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand 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 unpaid loans.

Having extensive holdings of these kinds of assets may eventually force a credit union 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 money, decreasing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, CABOT EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CABOT EMPLOYEES scored 4 out of a possible 30, falling short of the national average of 10.11.

CABOT EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.