Safe and Sound

LYNN MUNICIPAL EMPLOYEES

LYNN, MA
5
Star Rating
Started in 1941, LYNN MUNICIPAL EMPLOYEES is an NCUA-insured credit union headquartered in LYNN, MA. Regulatory filings show the credit union having $2.3 million in assets, as of December 31, 2017.

Its 436 members currently have $1.7 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.0 million.

Overall, Bankrate believes that, as of December 31, 2017, LYNN 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 did on the three major 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 a key measurement of an institution's financial resilience. 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, more capital is preferred.

LYNN MUNICIPAL EMPLOYEES achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

LYNN MUNICIPAL EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets means a credit union may have to use capital to cover losses, reducing 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 increasing the chances of a failure in the future.

On Bankrate's test of asset quality, LYNN MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 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 long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

LYNN MUNICIPAL EMPLOYEES underperformed the average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.