Safe and Sound

CONTINENTAL EMPLOYEES

PINEVILLE, LA
1
Star Rating
PINEVILLE, LA-based CONTINENTAL EMPLOYEES is an NCUA-insured credit union started in 1950. Regulatory filings show the credit union having $1.2 million in assets, as of December 31, 2017.

The credit union holds loans and leases worth $918,302. Its 193 members currently have $711,379 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONTINENTAL EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is important. 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, CONTINENTAL EMPLOYEES achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.

CONTINENTAL EMPLOYEES's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these kinds of assets could eventually have 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 no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

CONTINENTAL EMPLOYEES came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 0 out of a possible 40 points .

The credit union's ratio of problem assets was 1.00 percent in our test, the same as the national average.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

CONTINENTAL EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.