Safe and Sound

VERMILION SCHOOL EMPLOYEES

ABBEVILLE, LA
4
Star Rating
ABBEVILLE, LA-based VERMILION SCHOOL EMPLOYEES is an NCUA-insured credit union founded in 1973. As of December 31, 2017, the credit union had assets of $14.3 million.

Thanks to the efforts of 3 full-time employees, the credit union has amassed loans and leases worth $3.8 million. VERMILION SCHOOL EMPLOYEES's 2,084 members currently have $12.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VERMILION SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, more capital is better.

VERMILION SCHOOL EMPLOYEES came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

VERMILION SCHOOL EMPLOYEES had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, VERMILION SCHOOL EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of VERMILION SCHOOL EMPLOYEES's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, VERMILION SCHOOL EMPLOYEES scored 16 out of a possible 30, exceeding the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.