Safe and Sound

JEANNE D'ARC

Lowell, MA
4
Star Rating
Founded in 1911, JEANNE D'ARC is an NCUA-insured credit union headquartered in Lowell, MA. The credit union holds assets of $1.34 billion, according to December 31, 2017, regulatory filings.

Members have $1.18 billion on deposit tended by 201 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.18 billion. JEANNE D'ARC's 83,785 members currently have $1.12 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JEANNE D'ARC 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is valuable. When looking at safety and soundness, more capital is better.

JEANNE D'ARC received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

JEANNE D'ARC 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

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

Having lots of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, JEANNE D'ARC scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

JEANNE D'ARC's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, JEANNE D'ARC scored 14 out of a possible 30, exceeding the national average of 10.11.

One indication that JEANNE D'ARC is running ahead of 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.