Safe and Sound

LION'S SHARE

SALISBURY, NC
4
Star Rating
SALISBURY, NC-based LION'S SHARE is an NCUA-insured credit union founded in 1982. As of December 31, 2017, the credit union held assets of $43.6 million.

With 18 full-time employees, the credit union holds loans and leases worth $36.4 million. Its 10,995 members currently have $38.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LION'S SHARE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, a credit union's level of capital is an important measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

LION'S SHARE received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

LION'S SHARE had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

LION'S SHARE finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A below-average ratio of problem 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 earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used 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.

LION'S SHARE scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.