Safe and Sound

DISTRICT 08

ALEXANDRIA, LA
3
Star Rating
Started in 1961, DISTRICT 08 is an NCUA-insured credit union headquartered in ALEXANDRIA, LA. The credit union has $7.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $3.6 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.6 million. DISTRICT 08's 1,617 members currently have $6.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DISTRICT 08 exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score 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 provides protection for members during times of financial instability for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

DISTRICT 08 received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

DISTRICT 08 appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets may eventually force a credit union to use capital to cover losses, shrinking 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, resulting in diminished earnings and potentially more risk of a future failure.

DISTRICT 08 exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled 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 long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

DISTRICT 08 scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One sign that DISTRICT 08 is running ahead of 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.