Safe and Sound

ST. MARY PARISH SCHOOL EMP.

Franklin, LA
4
Star Rating
Franklin, LA-based ST. MARY PARISH SCHOOL EMP. is an NCUA-insured credit union started in 1976. Regulatory filings show the credit union having $426,263 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $164,690. Its 287 members currently have $331,167 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. MARY PARISH SCHOOL EMP. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. 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 periods of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is important. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, ST. MARY PARISH SCHOOL EMP. racked up 30 out of a possible 30 points, exceeding the national average of 15.65.

ST. MARY PARISH SCHOOL EMP. had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets could eventually force a credit union to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, ST. MARY PARISH SCHOOL EMP. scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

ST. MARY PARISH SCHOOL EMP.'s ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, ST. MARY PARISH SCHOOL EMP. scored 0 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.