Safe and Sound

LEFORS

lefors, TX
4
Star Rating
lefors, TX-based LEFORS is an NCUA-insured credit union founded in 1960. As of December 31, 2017, the credit union had assets of $5.0 million.

With 3 full-time employees, the credit union currently holds loans and leases worth $2.7 million. Its 741 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LEFORS 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 key criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure the adequacy of a credit union's capital, LEFORS scored 22 out of a possible 30 points, beating out the national average of 15.65.

LEFORS's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, a sign that it could have an easier time weathering 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 mortgages.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, LEFORS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than 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, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

LEFORS fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

LEFORS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.