Safe and Sound

SOUTHEAST LOUISIANA VETERANS HEALTH

New Orleans, LA
5
Star Rating
SOUTHEAST LOUISIANA VETERANS HEALTH is an NCUA-insured credit union founded in 1948 and currently based in New Orleans, LA. The credit union has $1.6 million in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $1.6 million. Its 894 members currently have $1.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHEAST LOUISIANA VETERANS HEALTH exhibited a superior condition, earning a full 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 U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It works as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

SOUTHEAST LOUISIANA VETERANS HEALTH scored 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

SOUTHEAST LOUISIANA VETERANS HEALTH had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may eventually have to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, SOUTHEAST LOUISIANA VETERANS HEALTH scored 40 out of a possible 40 points, beating the national average of 38.09 points.

SOUTHEAST LOUISIANA VETERANS HEALTH's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive 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, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, SOUTHEAST LOUISIANA VETERANS HEALTH scored 18 out of a possible 30, above the national average of 10.11.

One sign that SOUTHEAST LOUISIANA VETERANS HEALTH is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.