Safe and Sound

LOUISIANA MACHINERY EMPLOYEES

MONROE, LA
5
Star Rating
LOUISIANA MACHINERY EMPLOYEES is a MONROE, LA-based, NCUA-insured credit union founded in 1961. Regulatory filings show the credit union having assets of $4.9 million, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $4.1 million. LOUISIANA MACHINERY EMPLOYEES's 755 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOUISIANA MACHINERY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial stability, capital is essential. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, LOUISIANA MACHINERY EMPLOYEES achieved a score of 26 out of a possible 30 points, better than the national average of 15.65.

LOUISIANA MACHINERY EMPLOYEES had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, 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 may eventually be required to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

LOUISIANA MACHINERY EMPLOYEES scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

LOUISIANA MACHINERY EMPLOYEES scored 6 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

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