Safe and Sound

LYNN FIREMENS

LYNN, MA
5
Star Rating
Founded in 1935, LYNN FIREMENS is an NCUA-insured credit union headquartered in LYNN, MA. Regulatory filings show the credit union having assets of $12.0 million, as of December 31, 2017.

Its 1,510 members currently have $9.7 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $7.6 million.

Overall, Bankrate believes that, as of December 31, 2017, LYNN FIREMENS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

LYNN FIREMENS did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 28 out of a possible 30 points.

LYNN FIREMENS appears to be on more solid financial footing than its peers, with a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a future failure.

LYNN FIREMENS scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making 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, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

LYNN FIREMENS underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that the credit union is beating 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.