Safe and Sound

W B R T

PORT ALLEN, LA
4
Star Rating
PORT ALLEN, LA-based W B R T is an NCUA-insured credit union founded in 1959. Regulatory filings show the credit union having assets of $2.3 million, as of December 31, 2017.

Members have $1.6 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.6 million. Its 1,029 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, W B R T exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It acts as a cushion against losses and provides protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, W B R T racked up 30 out of a possible 30 points, above the national average of 15.65.

W B R T's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

W B R T scored 28 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

Troubled assets made up 0.00 percent of W B R T's total assets 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 long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

W B R T underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.