Safe and Sound

S.A.I.F.

BATON ROUGE, LA
2
Star Rating
BATON ROUGE, LA-based S.A.I.F. is an NCUA-insured credit union founded in 1950. Regulatory filings show the credit union having $9.2 million in assets, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $5.2 million. Its 1,545 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, S.A.I.F. exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is preferred.

S.A.I.F. came in below the national average of 15.65 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.

S.A.I.F.'s capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these types of assets could eventually require a credit union to use capital to cover losses, reducing its cushion of equity. 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, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, S.A.I.F. scored 40 out of a possible 40 points, above the national average of 38.09 points.

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

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

S.A.I.F. fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

S.A.I.F. 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.