Safe and Sound

KRAFTMAN

BASTROP, LA
4
Star Rating
KRAFTMAN is a BASTROP, LA-based, NCUA-insured credit union dating back to 1953. As of December 31, 2017, the credit union held assets of $107.9 million.

With 23 full-time employees, the credit union holds loans and leases worth $35.5 million. KRAFTMAN's 7,462 members currently have $91.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KRAFTMAN 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 important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

KRAFTMAN scored 20 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

KRAFTMAN's capitalization ratio of 20.00 percent in our test was better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these types of assets could eventually require a credit union to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a future failure.

KRAFTMAN scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of KRAFTMAN's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

KRAFTMAN scored 8 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that KRAFTMAN is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.