Safe and Sound

OLD SPANISH TRAIL

WESTLAKE, LA
4
Star Rating
WESTLAKE, LA-based OLD SPANISH TRAIL is an NCUA-insured credit union founded in 1941. As of December 31, 2017, the credit union had assets of $8.5 million.

With 3 full-time employees, the credit union has amassed loans and leases worth $4.1 million. OLD SPANISH TRAIL's 1,305 members currently have $6.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OLD SPANISH TRAIL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is important. From a safety and soundness perspective, the more capital, the better.

OLD SPANISH TRAIL scored 28 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

OLD SPANISH TRAIL had a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, 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 may eventually force a credit union to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

OLD SPANISH TRAIL exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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 earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

OLD SPANISH TRAIL fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that OLD SPANISH TRAIL is doing better than 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.