Safe and Sound

LAKE SHORE

ANGOLA, NY
4
Star Rating
Started in 1967, LAKE SHORE is an NCUA-insured credit union headquartered in ANGOLA, NY. Regulatory filings show the credit union having $16.4 million in assets, as of December 31, 2017.

Members have $7.6 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.6 million. LAKE SHORE's 3,095 members currently have $14.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKE SHORE 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 important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

LAKE SHORE fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 10 out of a possible 30 points.

LAKE SHORE's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of LAKE SHORE's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

LAKE SHORE exceeded the national average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than 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.