Safe and Sound

TIMES

Honolulu, HI
4
Star Rating
TIMES is an Honolulu, HI-based, NCUA-insured credit union started in 1959. Regulatory filings show the credit union having assets of $7.7 million, as of June 30, 2017.

Thanks to the efforts of 2 full-time employees, the credit union has amassed loans and leases worth $2.3 million. TIMES's 1,164 members currently have $7.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TIMES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It acts as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, TIMES received a score of 6 out of a possible 30 points, lower than the national average of 15.26.

TIMES had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, 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 be required to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

TIMES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

Troubled assets made up 3.00 percent of TIMES's total assets in our test, below the national average and suggestive 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. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, TIMES scored 14 out of a possible 30, above the national average of 10.31.

TIMES had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.