Safe and Sound

SHELL GEISMAR

GEISMAR, LA
3
Star Rating
Started in 1969, SHELL GEISMAR is an NCUA-insured credit union based in GEISMAR, LA. The credit union has $26.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $18.2 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $18.2 million. SHELL GEISMAR's 3,237 members currently have $23.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHELL GEISMAR exhibited a generally satisfactory condition, earning 3 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 American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It acts as a cushion against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

SHELL GEISMAR received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

SHELL GEISMAR appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually be required to use capital to absorb 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 money, pushing down earnings and increasing the chances of a future failure.

SHELL GEISMAR scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely 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.

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

SHELL GEISMAR had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of 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.