Safe and Sound

LAKESHORE COMMUNITY

AVON LAKE, OH
2
Star Rating
Started in 1955, LAKESHORE COMMUNITY is an NCUA-insured credit union based in AVON LAKE, OH. Regulatory filings show the credit union having $27.4 million in assets, as of June 30, 2017.

With 8 full-time employees, the credit union has amassed loans and leases worth $9.7 million. Its 2,759 members currently have $25.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LAKESHORE COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It acts as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

LAKESHORE COMMUNITY finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 4 out of a possible 30 points.

LAKESHORE COMMUNITY's capitalization ratio of 7.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets could eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

LAKESHORE COMMUNITY did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 6.00 percent of LAKESHORE COMMUNITY's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

LAKESHORE COMMUNITY scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

LAKESHORE COMMUNITY had an earnings ratio of -9.00 percent in our test, worse than the average for all credit unions, suggesting that it's running behind 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.