Safe and Sound

LYNN-CO

TAHOKA, TX
2
Star Rating
TAHOKA, TX-based LYNN-CO is an NCUA-insured credit union started in 1960. The credit union has $523,540 in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $271,540. LYNN-CO's 311 members currently have $397,305 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LYNN-CO exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

LYNN-CO scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

LYNN-CO had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, LYNN-CO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

LYNN-CO's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LYNN-CO scored 0 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.