Safe and Sound

LAKEWOOD

RIB LAKE, WI
4
Star Rating
Founded in 1961, LAKEWOOD is an NCUA-insured credit union based in RIB LAKE, WI. As of December 31, 2017, the credit union had assets of $11.6 million.

Members have $4.7 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.7 million. LAKEWOOD's 1,648 members currently have $9.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKEWOOD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, LAKEWOOD scored 22 out of a possible 30 points, beating out the national average of 15.65.

LAKEWOOD appears to be on more solid financial footing than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with large numbers of these kinds of assets could eventually have to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

LAKEWOOD received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

LAKEWOOD had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.