Safe and Sound

LYNCHBURG MUNICIPAL EMPLOYEES

LYNCHBURG, VA
5
Star Rating
LYNCHBURG MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1961 and currently headquartered in LYNCHBURG, VA. As of June 30, 2017, the credit union held assets of $22.6 million.

Thanks to the work of 8 full-time employees, the credit union has amassed loans and leases worth $9.7 million. Its 3,532 members currently have $18.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LYNCHBURG MUNICIPAL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

LYNCHBURG MUNICIPAL EMPLOYEES scored 28 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.26.

LYNCHBURG MUNICIPAL EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a future failure.

LYNCHBURG MUNICIPAL EMPLOYEES did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

LYNCHBURG MUNICIPAL EMPLOYEES scored 14 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

LYNCHBURG MUNICIPAL EMPLOYEES had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming its peers in this area.








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.