Safe and Sound

GULF COAST

Corpus Christi, TX
2
Star Rating
Corpus Christi, TX-based GULF COAST is an NCUA-insured credit union started in 1940. The credit union has $210.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $191.8 million on deposit tended by 58 full-time employees. With that footprint, the credit union has amassed loans and leases worth $191.8 million. Its 11,801 members currently have $168.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GULF COAST exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, more capital is better.

GULF COAST received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

GULF COAST had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, GULF COAST scored 24 out of a possible 40 points, failing to reach the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 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 making money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

GULF COAST fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that the credit union is doing better than 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.