Safe and Sound

LAKELANDS

GREENWOOD, SC
2
Star Rating
GREENWOOD, SC-based LAKELANDS is an NCUA-insured credit union started in 1975. As of December 31, 2017, the credit union had assets of $12.3 million.

With 7 full-time employees, the credit union has amassed loans and leases worth $6.0 million. LAKELANDS's 2,570 members currently have $11.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKELANDS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, LAKELANDS received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.

LAKELANDS's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

LAKELANDS scored 36 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. 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, take away from a credit union's ability to do those things.

LAKELANDS scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

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.