Safe and Sound

XAVIER UNIVERSITY

NEW ORLEANS, LA
4
Star Rating
Started in 1959, XAVIER UNIVERSITY is an NCUA-insured credit union headquartered in NEW ORLEANS, LA. The credit union holds assets of $2.0 million, according to December 31, 2017, regulatory filings.

XAVIER UNIVERSITY's 363 members currently have $1.7 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $379,916.

Overall, Bankrate believes that, as of December 31, 2017, XAVIER UNIVERSITY exhibited a good condition, earning 4 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 grade 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 provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, XAVIER UNIVERSITY scored 20 out of a possible 30 points, beating the national average of 15.65.

XAVIER UNIVERSITY appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to absorb losses, reducing 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, XAVIER UNIVERSITY scored 36 out of a possible 40 points, failing to reach the national average of 38.09 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 earnings performance 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 better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

XAVIER UNIVERSITY underperformed the average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that the credit union is beating 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.