Memorandum on findings

WINGS FINANCIAL

14985 Glazier Avenue
Apple Valley, MN 55124

STAR RATING: 4
Predictive Indicator neutral
As of September 30, 2009
Credit Union ID 24351

INTRODUCTION

A credit union is a nonprofit, cooperative financial institution, owned and administered by individual members, who must meet eligibility requirements to join. Credit unions pay no federal income tax. Community development credit union are chartered to serve the needs of low income members who reside in financially distressed or under-served communities. Seventeen corporate credit unions, located throughout the country, function as central banking facilities for the U.S. credit union industry.

The Bankrate proprietary credit union rating model analyzes capitalization, asset quality, earnings, and liquidity to produce composite and component "Star" ratings that can be used as a measure of the rated entity's financial safety and soundness. Additionally, early warning components of the model highlight operating characteristics of immediate concern and recommended follow-up actions. The analyses are not adjusted for TARP funding and those institutions receiving funds may receive ratings that would differ were the TARP funds adjusted out of the analyses. You can check whether or not this institution has received TARP funding and whether or not they have paid it back at http://bailout.propublica.org/main/list/index.

COMPONENT HIGHLIGHTS

Institution Commentary

OVERVIEW of Institution
WINGS FINANCIAL is a federally chartered credit union, which, as of September 30, 2009, reported total assets of approximately $2.3329 billion. At that date, loans and deposits held by the institution amounted to $856.5613 million and $1.9096 billion, respectively. Equity, the difference between a credit union's total assets and total liabilities, was determined to have been $253.6779 million, which was 10.87% of total assets.

COMPOSITE SUMMARY
Bankrate believes that, as of September 30, 2009, this credit union exhibited a sound condition, characterized by strong capitalization, satisfactory asset quality, normal profitability, and near normal liquidity.

CAPITAL ANALYSIS
For the one year period ended September 30, 2009, this credit union reported a very strong rate of growth in equity capital. Balance sheet structural changes, through the one year period of time ended September 30, 2009, have had little or no positive, and quite possibly a negative, impact upon the institution's capital position. Our analytical methodology does take into account the quantity, quality, durability, and direction of net worth, and, as set forth above, we have determined, based upon our series of tests, that this credit union demonstrates strong capitalization.

ASSET QUALITY ANALYSIS
The institution reveals, as previously stated, satisfactory asset quality. That conclusion incorporates our analysis of data depicting regional economic conditions as well as our computations of a somewhat higher than standard September 30, 2009 nonperforming asset ratio and well below normal reserve coverage for nonperforming loans.

Credit card lending activities should not, based on our analysis of asset quality trends and conditions, have a substantial negative impact upon future results.

EARNINGS ANALYSIS
For the year ended September 30, 2009, this institution recorded a net profit of NaN, which represented a return on average assets (ROA) of 1.46%. Year earlier four quarter results amounted to a net profit of NaN, or a 1.08% ROA. ROA is the key measurement of profitability within the credit union industry, and the industry's ROA, for the nine months ended September 30, 2009, approximated 0.28%.

We have concluded that, for the four quarters ending September 30 2009, the institution achieved a substantially better than normal return on average assets. Strict expense control defined by a well below standard overhead ratio is in evidence.

LIQUIDITY ANALYSIS
As of September 30, 2009, the institution displayed strong balance sheet liquidity.

Accounting principles require some securities to be categorized as "Available-for-Sale." Changes in market value of these securities are reflected through the GAAP (Generally Accepted Accounting Principles) net worth of the institution. Based upon the credit union's present balance sheet, changes in the value of the current level of securities reported as upon future net worth of the credit union.

INSTITUTION SUMMARY
This credit union has been rated sound.

As stated, we have determined a Composite Star rating for this credit union of 4 , indicative of a sound financial condition. At times, conditions of financial institutions change rapidly and significantly. Hence, our Safe & Sound Star ratings should not be deemed predictive of likely future ratings. However, in view of early warning indicators set forth within this report, in combination with the institution's financial data, we believe that the Star rating for this institution is unlikely to change within the ensuing twelve month period.