Safe and Sound

LEADCO COMMUNITY

Park Hills, MO
3
Star Rating
LEADCO COMMUNITY is a Park Hills, MO-based, NCUA-insured credit union that opened its doors in 1953. The credit union has assets of $21.7 million, according to December 31, 2017, regulatory filings.

With 10 full-time employees, the credit union has amassed loans and leases worth $11.4 million. LEADCO COMMUNITY's 4,312 members currently have $19.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LEADCO COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It acts as a bulwark against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

LEADCO COMMUNITY finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

LEADCO COMMUNITY had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it's less well prepared for financial trouble 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 loans.

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

LEADCO COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

LEADCO COMMUNITY's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive 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. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

LEADCO COMMUNITY scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One sign that the credit union 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.