Safe and Sound

LOVERS LANE

Saint Joseph, MO
4
Star Rating
LOVERS LANE is a Saint Joseph, MO-based, NCUA-insured credit union started in 1956. The credit union has $6.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $5.1 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.1 million. LOVERS LANE's 911 members currently have $5.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOVERS LANE 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 important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

LOVERS LANE did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

LOVERS LANE's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, LOVERS LANE scored 28 out of a possible 40 points, lower than 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 earning money affects its long-term survivability. 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 better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, LOVERS LANE scored 16 out of a possible 30, beating the national average of 10.11.

One indication that LOVERS LANE is outperforming 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.