Safe and Sound

G.H.S.

GREENVILLE, SC
4
Star Rating
G.H.S. is a GREENVILLE, SC-based, NCUA-insured credit union started in 1954. The credit union holds assets of $44.2 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 12 full-time employees, the credit union currently holds loans and leases worth $16.7 million. Its 12,692 members currently have $39.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, G.H.S. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is key. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, G.H.S. received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

G.H.S. had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a failure in the future.

G.H.S. scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

G.H.S. exceeded the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

G.H.S. had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.