THE INSTITUTION'S SCORE
Capital works as a buffer against losses and affords 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. From a safety and soundness perspective, the more capital, the better.
LM scored below the national average of 15.26 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.
LM appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 7.00 percent in our test, lower than the average for all credit unions.