Safe and Sound

LANECO

EUGENE, OR
3
Star Rating
LANECO is an NCUA-insured credit union founded in 1958 and currently headquartered in EUGENE, OR. Regulatory filings show the credit union having assets of $15.7 million, as of December 31, 2017.

With 2 full-time employees, the credit union currently holds loans and leases worth $6.6 million. LANECO's 1,916 members currently have $14.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LANECO exhibited a generally satisfactory condition, earning 3 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.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial fortitude, capital is useful. When looking at safety and soundness, the more capital, the better.

LANECO received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

LANECO's capitalization ratio of 6.00 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

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a future failure.

LANECO scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LANECO scored 4 out of a possible 30, below the national average of 10.11.

One indication that LANECO is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.