Safe and Sound

LIFEWAY

NASHVILLE, TN
4
Star Rating
LIFEWAY is an NCUA-insured credit union started in 1954 and currently based in NASHVILLE, TN. The credit union holds assets of $43.8 million, according to December 31, 2017, regulatory filings.

Members have $23.0 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $23.0 million. Its 3,576 members currently have $39.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LIFEWAY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is useful. From a safety and soundness perspective, the higher the capital, the better.

LIFEWAY fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

LIFEWAY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a failure in the future.

LIFEWAY scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

LIFEWAY's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

LIFEWAY scored 8 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

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