Safe and Sound

TIMKEN AEROSPACE

LEBANON, NH
3
Star Rating
Founded in 1953, TIMKEN AEROSPACE is an NCUA-insured credit union headquartered in LEBANON, NH. Regulatory filings show the credit union having assets of $6.8 million, as of June 30, 2017.

Members have $4.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $4.0 million. Its 808 members currently have $6.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TIMKEN AEROSPACE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

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

TIMKEN AEROSPACE finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 14 out of a possible 30 points.

TIMKEN AEROSPACE 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 past-due loans.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

TIMKEN AEROSPACE beat out the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. 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. However, credit unions that are losing money have less ability to do those things.

TIMKEN AEROSPACE scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.

TIMKEN AEROSPACE had an earnings ratio of -20.00 percent in our test, worse than the average for all credit unions, suggesting that it's underperforming 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.