Safe and Sound

LBS FINANCIAL

Long Beach, CA
4
Star Rating
Long Beach, CA-based LBS FINANCIAL is an NCUA-insured credit union founded in 1935. Regulatory filings show the credit union having assets of $1.38 billion, as of December 31, 2017.

With 196 full-time employees, the credit union holds loans and leases worth $962.1 million. LBS FINANCIAL's 129,167 members currently have $1.19 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LBS FINANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a buffer against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

LBS FINANCIAL did better than the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

LBS FINANCIAL had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with 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.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing 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.

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

LBS FINANCIAL's ratio of problem assets was 0.00 percent in our test, less 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 making money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

LBS FINANCIAL scored 12 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One indication that the credit union is beating 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.