Safe and Sound

LA CAPITOL

BATON ROUGE, LA
4
Star Rating
Started in 1961, LA CAPITOL is an NCUA-insured credit union headquartered in BATON ROUGE, LA. The credit union has assets of $491.4 million, according to December 31, 2017, regulatory filings.

Members have $335.4 million on deposit tended by 177 full-time employees. With that footprint, the credit union has amassed loans and leases worth $335.4 million. LA CAPITOL's 49,324 members currently have $432.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LA CAPITOL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is important. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, LA CAPITOL received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

LA CAPITOL had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets could eventually force a credit union to use capital to cover 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 interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.

LA CAPITOL scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

LA CAPITOL scored 12 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One indication that the credit union is running ahead of 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.