Safe and Sound

LAFAYETTE

ROCKVILLE, MD
4
Star Rating
LAFAYETTE is an NCUA-insured credit union founded in 1935 and currently headquartered in ROCKVILLE, MD. Regulatory filings show the credit union having $516.8 million in assets, as of December 31, 2017.

With 91 full-time employees, the credit union holds loans and leases worth $457.8 million. Its 20,308 members currently have $417.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAFAYETTE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is useful. It works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, LAFAYETTE received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

LAFAYETTE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate 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 unpaid mortgages.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, LAFAYETTE scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

A lower-than-average ratio of problem 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 profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

LAFAYETTE fell behind the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One indication that LAFAYETTE is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.