Safe and Sound

LAMPCO

ANDERSON, IN
2
Star Rating
LAMPCO is an NCUA-insured credit union founded in 1962 and currently based in ANDERSON, IN. Regulatory filings show the credit union having assets of $56.4 million, as of December 31, 2017.

Members have $31.8 million on deposit tended by 22 full-time employees. With that footprint, the credit union currently holds loans and leases worth $31.8 million. Its 8,013 members currently have $50.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAMPCO exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, LAMPCO received a score of 4 out of a possible 30 points, coming in below the national average of 15.65.

LAMPCO appears to be weaker than its peers in this area, with a capitalization ratio of 4.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, LAMPCO scored 32 out of a possible 40 points, less than the national average of 38.09 points.

LAMPCO's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

LAMPCO fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that LAMPCO is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.