Safe and Sound

WINGS FINANCIAL

APPLE VALLEY, MN
5
Star Rating
WINGS FINANCIAL is an NCUA-insured credit union started in 1938 and currently headquartered in APPLE VALLEY, MN. Regulatory filings show the credit union having $4.48 billion in assets, as of June 30, 2017.

Thanks to the efforts of 414 full-time employees, the credit union holds loans and leases worth $2.43 billion. WINGS FINANCIAL's 224,574 members currently have $3.90 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WINGS FINANCIAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It acts as a buffer against losses and as protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

WINGS FINANCIAL received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.26.

WINGS FINANCIAL had a capitalization ratio of 11.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, WINGS FINANCIAL scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can 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 times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, WINGS FINANCIAL scored 20 out of a possible 30, beating the national average of 10.31.

One indication that WINGS FINANCIAL is beating its peers in this area was its earnings ratio of 12.00 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.