THE INSTITUTION'S SCORE
Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.
LAFCU came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 14 out of a possible 30 points.
LAFCU had a capitalization ratio of 14.00 percent in our test, below the average for all credit unions, an indication that it's weaker than its peers.