Safe and Sound

FIRESTONE LAKE CHARLES

SULPHUR, LA
4
Star Rating
SULPHUR, LA-based FIRESTONE LAKE CHARLES is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having assets of $10.4 million, as of December 31, 2017.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $3.6 million. FIRESTONE LAKE CHARLES's 1,720 members currently have $9.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRESTONE LAKE CHARLES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to score American 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 when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial stability, capital is essential. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, FIRESTONE LAKE CHARLES racked up 16 out of a possible 30 points, beating out the national average of 15.65.

FIRESTONE LAKE CHARLES had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity cushion. 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, diminishing earnings and elevating the risk of a failure in the future.

FIRESTONE LAKE CHARLES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, FIRESTONE LAKE CHARLES scored 10 out of a possible 30, less than the national average of 10.11.

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