Safe and Sound

GULF SHORE

Texas City, TX
3
Star Rating
GULF SHORE is a Texas City, TX-based, NCUA-insured credit union founded in 1937. Regulatory filings show the credit union having assets of $14.0 million, as of December 31, 2017.

Members have $7.4 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $7.4 million. GULF SHORE's 1,905 members currently have $12.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GULF SHORE exhibited a generally satisfactory condition, earning 3 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

When it comes to measuring a credit union's financial strength, capital is key. 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, more capital is better.

On our test to measure the adequacy of a credit union's capital, GULF SHORE received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

GULF SHORE appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

GULF SHORE scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

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

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

GULF SHORE scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.