Safe and Sound

NORTHWEST LOUISIANA

SHREVEPORT, LA
5
Star Rating
NORTHWEST LOUISIANA is a SHREVEPORT, LA-based, NCUA-insured credit union that opened its doors in 1975. Regulatory filings show the credit union having $10.1 million in assets, as of December 31, 2017.

With 8 full-time employees, the credit union has amassed loans and leases worth $5.7 million. Its 1,323 members currently have $6.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHWEST LOUISIANA 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 key 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 acts as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, NORTHWEST LOUISIANA scored 30 out of a possible 30 points, beating out the national average of 15.65.

NORTHWEST LOUISIANA had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

NORTHWEST LOUISIANA scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

NORTHWEST LOUISIANA had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.