Safe and Sound

CREDIT UNION OF LEAVENWORTH COUNTY

Lansing, KS
1
Star Rating
Lansing, KS-based CREDIT UNION OF LEAVENWORTH COUNTY is an NCUA-insured credit union started in 1956. Regulatory filings show the credit union having $7.1 million in assets, as of December 31, 2017.

Members have $3.5 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.5 million. CREDIT UNION OF LEAVENWORTH COUNTY's 1,280 members currently have $6.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF LEAVENWORTH COUNTY exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important 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 an important measurement of an institution's financial resilience. It acts as a buffer against losses and as protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

CREDIT UNION OF LEAVENWORTH COUNTY fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

CREDIT UNION OF LEAVENWORTH COUNTY's capitalization ratio of 6.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, CREDIT UNION OF LEAVENWORTH COUNTY scored 40 out of a possible 40 points, better than 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 ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

CREDIT UNION OF LEAVENWORTH COUNTY underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.