Safe and Sound

WILLIS CREDIT UNION

NASHVILLE, TN
5
Star Rating
Started in 1967, WILLIS CREDIT UNION is an NCUA-insured credit union based in NASHVILLE, TN. The credit union holds assets of $18.6 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union currently holds loans and leases worth $13.9 million. Its 2,033 members currently have $16.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WILLIS CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, WILLIS CREDIT UNION racked up 16 out of a possible 30 points, better than the national average of 15.65.

WILLIS CREDIT UNION had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, a sign that it's running neck and neck with 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 troubled assets, such as past-due mortgages.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

WILLIS CREDIT UNION scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than 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, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

WILLIS CREDIT UNION scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One indication 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.