Safe and Sound

LOUP EMPLOYEES

GONZALES, LA
5
Star Rating
LOUP EMPLOYEES is a GONZALES, LA-based, NCUA-insured credit union founded in 1968. Regulatory filings show the credit union having assets of $10.2 million, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union holds loans and leases worth $4.6 million. LOUP EMPLOYEES's 1,076 members currently have $8.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOUP EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It acts as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, LOUP EMPLOYEES achieved a score of 30 out of a possible 30 points, above the national average of 15.65.

LOUP EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate 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 a large number of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

LOUP EMPLOYEES beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

LOUP EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

LOUP EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming its peers in this area.

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.