Safe and Sound

WEBSTER UNITED

MINDEN, LA
4
Star Rating
WEBSTER UNITED is a MINDEN, LA-based, NCUA-insured credit union that opened its doors in 1957. As of December 31, 2017, the credit union had assets of $4.0 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.9 million. Its 1,292 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEBSTER UNITED exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade American 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 provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, WEBSTER UNITED scored 24 out of a possible 30 points, above the national average of 15.65.

WEBSTER UNITED appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

WEBSTER UNITED scored 28 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets 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 making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, WEBSTER UNITED scored 6 out of a possible 30, below 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, a sign 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.