Safe and Sound

LATITUDE 32

CHARLESTON, SC
4
Star Rating
LATITUDE 32 is an NCUA-insured credit union founded in 1952 and currently based in CHARLESTON, SC. The credit union holds $52.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $41.8 million on deposit tended by 19 full-time employees. With that footprint, the credit union holds loans and leases worth $41.8 million. LATITUDE 32's 7,063 members currently have $46.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LATITUDE 32 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did 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

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, LATITUDE 32 received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

LATITUDE 32 had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the risk of a future failure.

LATITUDE 32 exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of LATITUDE 32's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, LATITUDE 32 scored 14 out of a possible 30, beating the national average of 10.11.

One sign that the credit union is outperforming 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.