Safe and Sound

LAKE COUNTY EDUCATIONAL

Painesville, OH
4
Star Rating
LAKE COUNTY EDUCATIONAL is an NCUA-insured credit union started in 1995 and currently headquartered in Painesville, OH. As of December 31, 2017, the credit union had assets of $21.8 million.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $10.6 million. LAKE COUNTY EDUCATIONAL's 2,653 members currently have $20.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKE COUNTY EDUCATIONAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, LAKE COUNTY EDUCATIONAL received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

LAKE COUNTY EDUCATIONAL had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be 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.

LAKE COUNTY EDUCATIONAL scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and suggestive 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. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

LAKE COUNTY EDUCATIONAL exceeded the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

One indication that LAKE COUNTY EDUCATIONAL is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.