Safe and Sound

GULF COAST COMMUNITY

GULFPORT, MS
5
Star Rating
GULFPORT, MS-based GULF COAST COMMUNITY is an NCUA-insured credit union founded in 1935. The credit union holds $101.1 million in assets, according to June 30, 2017, regulatory filings.

With 68 full-time employees, the credit union holds loans and leases worth $73.1 million. Its 13,065 members currently have $80.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GULF COAST COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

GULF COAST COMMUNITY achieved a score of 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.26.

GULF COAST COMMUNITY appears to be stronger than its peers, with a capitalization ratio of 17.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets means a credit union could have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

GULF COAST COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.15.

A higher-than-average ratio of troubled assets of 12.00 percent in our test was a potential cause for concern for GULF COAST COMMUNITY.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

GULF COAST COMMUNITY scored 16 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

One sign that GULF COAST COMMUNITY is beating its peers in this area was its earnings ratio of 8.00 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.