Safe and Sound

EAST FELICIANA TEACHERS

CLINTON, LA
2
Star Rating
EAST FELICIANA TEACHERS is a CLINTON, LA-based, NCUA-insured credit union dating back to 1967. Regulatory filings show the credit union having assets of $265,490, as of June 30, 2017.

EAST FELICIANA TEACHERS's 400 members currently have $245,534 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $155,085.

Overall, Bankrate believes that, as of June 30, 2017, EAST FELICIANA TEACHERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is crucial. It acts as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, EAST FELICIANA TEACHERS received a score of 6 out of a possible 30 points, falling short of the national average of 15.26.

EAST FELICIANA TEACHERS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions.

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 past-due mortgages.

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

EAST FELICIANA TEACHERS scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.15.

A greater-than-average ratio of troubled assets of 10.00 percent in our test was a potential cause for concern for EAST FELICIANA TEACHERS.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, EAST FELICIANA TEACHERS scored 0 out of a possible 30, failing to reach the national average of 10.31.

One sign that EAST FELICIANA TEACHERS is running behind its peers in this area was its earnings ratio of -20.00 percent in our test, less 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.