Safe and Sound

CONCORDIA PARISH SCHOOL EMP

Ferriday, LA
2
Star Rating
CONCORDIA PARISH SCHOOL EMP is a Ferriday, LA-based, NCUA-insured credit union started in 1966. The credit union holds $3.4 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $2.5 million. Its 1,363 members currently have $3.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONCORDIA PARISH SCHOOL EMP exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CONCORDIA PARISH SCHOOL EMP received a score of 12 out of a possible 30 points, coming in below the national average of 15.65.

CONCORDIA PARISH SCHOOL EMP appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets means a credit union may have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, CONCORDIA PARISH SCHOOL EMP scored 16 out of a possible 40 points, coming in below the national average of 38.09 points.

A lower-than-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 profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

CONCORDIA PARISH SCHOOL EMP scored 6 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

CONCORDIA PARISH SCHOOL EMP had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.