Safe and Sound

WEST JEFFERSON

MARRERO, LA
2
Star Rating
Founded in 1980, WEST JEFFERSON is an NCUA-insured credit union headquartered in MARRERO, LA. Regulatory filings show the credit union having assets of $5.8 million, as of December 31, 2017.

With 3 full-time employees, the credit union has amassed loans and leases worth $3.5 million. Its 1,706 members currently have $5.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEST JEFFERSON exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is important. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

WEST JEFFERSON finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 4 out of a possible 30 points.

WEST JEFFERSON appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

WEST JEFFERSON finished below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, WEST JEFFERSON scored 10 out of a possible 30, falling short of the national average of 10.11.

WEST JEFFERSON had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.