Safe and Sound

WINGS FINANCIAL

APPLE VALLEY, MN
5
Star Rating
Founded in 1938, WINGS FINANCIAL is an NCUA-insured credit union based in Apple Valley, MN. The credit union has $4.54 billion in assets, according to December 31, 2017, regulatory filings.

With 420 full-time employees, the credit union has amassed loans and leases worth $2.72 billion. Its 234,859 members currently have $3.93 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WINGS FINANCIAL 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 U.S. 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 bulwark against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, WINGS FINANCIAL received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

WINGS FINANCIAL's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem 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 types of assets could eventually be forced to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

WINGS FINANCIAL scored 22 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

One indication that the credit union is running ahead of 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.