Safe and Sound

COAST GUARD EMPLOYEES

NEW ORLEANS, LA
4
Star Rating
Started in 1950, COAST GUARD EMPLOYEES is an NCUA-insured credit union based in NEW ORLEANS, LA. Regulatory filings show the credit union having assets of $5.3 million, as of December 31, 2017.

Members have $1.4 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $1.4 million. COAST GUARD EMPLOYEES's 641 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COAST GUARD EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

COAST GUARD EMPLOYEES racked up 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

COAST GUARD EMPLOYEES's capitalization ratio of 30.00 percent in our test was better 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 try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, reducing its cushion 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, reducing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, COAST GUARD EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, COAST GUARD EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.