Safe and Sound

LORMET COMMUNITY

Amherst, OH
4
Star Rating
Started in 1936, LORMET COMMUNITY is an NCUA-insured credit union headquartered in Amherst, OH. The credit union holds assets of $181.3 million, according to December 31, 2017, regulatory filings.

Members have $121.7 million on deposit tended by 34 full-time employees. With that footprint, the credit union holds loans and leases worth $121.7 million. LORMET COMMUNITY's 21,759 members currently have $161.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LORMET COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

LORMET COMMUNITY received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

LORMET COMMUNITY had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

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

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, LORMET COMMUNITY scored 12 out of a possible 30, better than the national average of 10.11.

One sign that LORMET COMMUNITY is beating 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.