Safe and Sound

LATVIAN CLEVELAND

LAKEWOOD, OH
4
Star Rating
LATVIAN CLEVELAND is a LAKEWOOD, OH-based, NCUA-insured credit union dating back to 1960. Regulatory filings show the credit union having assets of $31.1 million, as of December 31, 2017.

With 4 full-time employees, the credit union currently holds loans and leases worth $18.6 million. LATVIAN CLEVELAND's 1,056 members currently have $26.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LATVIAN CLEVELAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is important. It works as a cushion against losses and as protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, LATVIAN CLEVELAND achieved a score of 20 out of a possible 30 points, beating the national average of 15.65.

LATVIAN CLEVELAND had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

LATVIAN CLEVELAND exceeded the national average of 38.09 on Bankrate's test of asset quality, 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 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, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

LATVIAN CLEVELAND fell behind the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

LATVIAN CLEVELAND had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.