Safe and Sound

LARAMIE PLAINS COMMUNITY

LARAMIE, WY
4
Star Rating
Founded in 1935, LARAMIE PLAINS COMMUNITY is an NCUA-insured credit union based in LARAMIE, WY. As of December 31, 2017, the credit union had assets of $50.5 million.

Thanks to the efforts of 14 full-time employees, the credit union has amassed loans and leases worth $43.0 million. LARAMIE PLAINS COMMUNITY's 6,790 members currently have $41.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LARAMIE PLAINS COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, LARAMIE PLAINS COMMUNITY received a score of 8 out of a possible 30 points, below the national average of 15.65.

LARAMIE PLAINS COMMUNITY had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, LARAMIE PLAINS COMMUNITY scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

LARAMIE PLAINS COMMUNITY scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One sign that LARAMIE PLAINS COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.