Safe and Sound

LAKESIDE EMPLS.

New Johnsonvill, TN
4
Star Rating
LAKESIDE EMPLS. is a New Johnsonvill, TN-based, NCUA-insured credit union founded in 1965. As of December 31, 2017, the credit union had assets of $38.4 million.

Thanks to the work of 13 full-time employees, the credit union has amassed loans and leases worth $16.7 million. LAKESIDE EMPLS.'s 3,001 members currently have $33.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKESIDE EMPLS. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is key. From a safety and soundness perspective, the more capital, the better.

LAKESIDE EMPLS. scored 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

LAKESIDE EMPLS. appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

LAKESIDE EMPLS. beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

LAKESIDE EMPLS.'s ratio of problem assets was 0.00 percent 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 making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

LAKESIDE EMPLS. scored 2 out of a possible 30 on Bankrate's test of earnings, coming in 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, suggesting that it's outperforming 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.