Safe and Sound

WILLOW ISLAND

Saint Marys, WV
2
Star Rating
Founded in 1953, WILLOW ISLAND is an NCUA-insured credit union based in Saint Marys, WV. As of December 31, 2017, the credit union held assets of $8.4 million.

Thanks to the efforts of 5 full-time employees, the credit union currently holds loans and leases worth $6.7 million. WILLOW ISLAND's 1,695 members currently have $7.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WILLOW ISLAND exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did 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 bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is useful. When looking at safety and soundness, more capital is better.

WILLOW ISLAND came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

WILLOW ISLAND had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

WILLOW ISLAND scored 32 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

WILLOW ISLAND's ratio of problem assets was 0.00 percent in our test, beneath the national average and 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 can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

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

WILLOW ISLAND had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.