Safe and Sound

LINDE EMPLOYEES

Bridgewater, NJ
1
Star Rating
Founded in 1950, LINDE EMPLOYEES is an NCUA-insured credit union based in Bridgewater, NJ. The credit union holds $7.0 million in assets, according to June 30, 2017, regulatory filings.

With 2 full-time employees, the credit union holds loans and leases worth $2.3 million. LINDE EMPLOYEES's 1,201 members currently have $6.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LINDE EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is key. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

LINDE EMPLOYEES scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, racking up 0 out of a possible 30 points.

LINDE EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 3.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

LINDE EMPLOYEES finished below the national average of 38.15 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

An above-average ratio of troubled assets of 32.00 percent in our test was something to watch for the credit union.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LINDE EMPLOYEES scored 0 out of a possible 30, below the national average of 10.31.

One sign that LINDE EMPLOYEES is lagging behind its peers in this area was its earnings ratio of -116.00 percent in our test, below 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.