Safe and Sound

LGE COMMUNITY

MARIETTA, GA
5
Star Rating
MARIETTA, GA-based LGE COMMUNITY is an NCUA-insured credit union founded in 1951. The credit union has $1.24 billion in assets, according to December 31, 2017, regulatory filings.

With 230 full-time employees, the credit union has amassed loans and leases worth $1.02 billion. Its 106,518 members currently have $1.03 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LGE COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during times of financial trouble for the credit union. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

LGE COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

LGE COMMUNITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, LGE COMMUNITY scored 40 out of a possible 40 points, exceeding the national average of 38.09 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 making money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

LGE COMMUNITY scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.