Lafayette Savings Bank Receives Superior Rating from Bauer Financial Inc.


Wednesday, April 2, 2014

Bauer Financial Inc. has presented Lafayette Savings Bank with their top ranking, a 5-Star Superior rating.  Bauer Financial, Inc. has been analyzing and reporting on the financial conditions of the nation's banking industry since 1983.  Through the years Bauer Financial has earned the reputation of the "nation's bank rating service."

Bauer Financial is the source that bankers and consumers trust when making important banking decisions. All institutions are subject to federal regulatory capital requirements, but those requirements vary among institutions and are dependent on many factors. In general, institutions are required to maintain a leverage capital ratio of at least 4%, a tier 1 risk-based capital ratio of at least 4% and a total risk-based capital ratio of at least 8%. Lafayette Savings Bank has a capital ratio of 11% and the risk-based capital ratio of 17.4%, above the capital requirements for banks.

"We pride ourselves on the strong financial position the bank has obtained", states Randolph R. Williams, President/CEO.  "This year marks the 145th anniversary of the bank founded by John Purdue.  We have been Greater Lafayette's hometown bank and partner for many years which is evident by the community's vote as the "Best Bank" for the second consecutive year."

In addition to the capital ratio, other criteria are used to determine the BauerFinancial™ Star-Rating. Some of these include but are not limited to: profitability/loss trend, evaluating the level of delinquent loans, charge-offs and repossessed assets, the market versus book value of the investment portfolio, regulatory supervisory agreements, the community reinvestment rating (CRA), historical data and liquidity.




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