Safe and Sound

LA PORTE COMMUNITY

La Porte, IN
4
Star Rating
La Porte, IN-based LA PORTE COMMUNITY is an NCUA-insured credit union founded in 1937. The credit union has assets of $40.3 million, according to December 31, 2017, regulatory filings.

Members have $25.7 million on deposit tended by 22 full-time employees. With that footprint, the credit union currently holds loans and leases worth $25.7 million. Its 6,642 members currently have $35.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LA PORTE COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of economic instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

LA PORTE COMMUNITY finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 14 out of a possible 30 points.

LA PORTE COMMUNITY had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is 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 problem assets, such as past-due mortgages.

A credit union with lots of these kinds of assets may eventually have to use capital to cover losses, shrinking its equity cushion. 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, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, LA PORTE COMMUNITY scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

LA PORTE COMMUNITY received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

LA PORTE COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.