Safe and Sound

EAST BATON ROUGE TEACHERS

Baton Rouge, LA
4
Star Rating
EAST BATON ROUGE TEACHERS is an NCUA-insured credit union founded in 1951 and currently based in Baton Rouge, LA. Regulatory filings show the credit union having $3.7 million in assets, as of December 31, 2017.

Thanks to the efforts of 3 full-time employees, the credit union holds loans and leases worth $2.3 million. Its 1,970 members currently have $3.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EAST BATON ROUGE TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

EAST BATON ROUGE TEACHERS scored 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

EAST BATON ROUGE TEACHERS appears to be on more solid financial footing than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

EAST BATON ROUGE TEACHERS scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, EAST BATON ROUGE TEACHERS scored 6 out of a possible 30, falling short of the national average of 10.11.

EAST BATON ROUGE TEACHERS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.