Safe and Sound

LINCOLN COUNTY

Libby, MT
5
Star Rating
Libby, MT-based LINCOLN COUNTY is an NCUA-insured credit union started in 1957. Regulatory filings show the credit union having $110.8 million in assets, as of December 31, 2017.

With 13 full-time employees, the credit union holds loans and leases worth $41.6 million. LINCOLN COUNTY's 5,563 members currently have $87.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LINCOLN COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of financial instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, more capital is better.

LINCOLN COUNTY scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

LINCOLN COUNTY appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

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

LINCOLN COUNTY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, LINCOLN COUNTY scored 8 out of a possible 30, falling short of the national average of 10.11.

One indication that LINCOLN COUNTY is doing better than 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.