Safe and Sound

FOUR SEASONS

OPELIKA, AL
4
Star Rating
Founded in 1964, FOUR SEASONS is an NCUA-insured credit union based in OPELIKA, AL. Regulatory filings show the credit union having assets of $50.7 million, as of December 31, 2017.

Members have $20.2 million on deposit tended by 24 full-time employees. With that footprint, the credit union currently holds loans and leases worth $20.2 million. Its 8,589 members currently have $45.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FOUR SEASONS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. Therefore, a credit union's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, more capital is better.

FOUR SEASONS fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

FOUR SEASONS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets may eventually 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, reducing earnings and increasing the risk of a failure in the future.

FOUR SEASONS scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

FOUR SEASONS's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, FOUR SEASONS scored 6 out of a possible 30, coming in below the national average of 10.11.

One indication that FOUR SEASONS is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.