Safe and Sound

LOMTO

WOODSIDE, NY
NR
Star Rating
Founded in 1936, LOMTO is an NCUA-insured credit union based in WOODSIDE, NY. The credit union has assets of $218.9 million, according to June 30, 2017, regulatory filings.

With 27 full-time employees, the credit union has amassed loans and leases worth $187.2 million. LOMTO's 2,891 members currently have $164.3 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's a look at how the credit union faired on the three major 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 is a key measurement of an institution's financial fortitude. It acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

LOMTO received a score of 0 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

LOMTO appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 0.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended 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 troubled assets, such as past-due loans.

A credit union with lots of these kinds of assets may eventually be required to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a future failure.

LOMTO scored 0 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.15.

The credit union's ratio of troubled assets was 252.00 percent in our test, above the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, LOMTO scored 0 out of a possible 30, failing to reach the national average of 10.31.

LOMTO had an earnings ratio of -3,480.00 percent in our test, less than the average for all credit unions, a sign that it's underperforming 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.