Safe and Sound

CABOT EMPLOYEES

Ville Platte, LA
3
Star Rating
CABOT EMPLOYEES is a Ville Platte, LA-based, NCUA-insured credit union founded in 1956. As of December 31, 2017, the credit union held assets of $553,866.

The credit union holds loans and leases worth $205,406. Its 73 members currently have $477,241 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CABOT EMPLOYEES exhibited a generally satisfactory condition, earning 3 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is better.

CABOT EMPLOYEES scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

CABOT EMPLOYEES had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

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 loans.

Having a large number of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, reducing 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 money, pushing down earnings and elevating the risk of a future failure.

CABOT EMPLOYEES scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely 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.

CABOT EMPLOYEES did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that CABOT EMPLOYEES is beating its peers in this area was its earnings ratio of 0.00 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.