Safe and Sound

LIFETIME

RICHARDSON, TX
5
Star Rating
LIFETIME is an NCUA-insured credit union founded in 1949 and currently based in RICHARDSON, TX. Regulatory filings show the credit union having assets of $48.5 million, as of December 31, 2017.

Members have $27.5 million on deposit tended by 12 full-time employees. With that footprint, the credit union has amassed loans and leases worth $27.5 million. Its 5,562 members currently have $39.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LIFETIME exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial trouble for the credit union. It follows then that a credit union's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, LIFETIME achieved a score of 26 out of a possible 30 points, better than the national average of 15.65.

LIFETIME had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, shrinking 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 interest for the credit union, diminishing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, LIFETIME scored 40 out of a possible 40 points, better than 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 greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

LIFETIME received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One indication that the credit union is doing better than 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.