Safe and Sound

WINSOUTH

GADSDEN, AL
4
Star Rating
WINSOUTH is a GADSDEN, AL-based, NCUA-insured credit union dating back to 1951. Regulatory filings show the credit union having assets of $259.1 million, as of December 31, 2017.

Thanks to the efforts of 99 full-time employees, the credit union holds loans and leases worth $181.7 million. WINSOUTH's 35,325 members currently have $236.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WINSOUTH exhibited a good condition, earning 4 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 score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

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

WINSOUTH's capitalization ratio of 8.00 percent in our test was lower 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 estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having a large number of these kinds of assets may eventually require a credit union 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, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, WINSOUTH scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

The credit union's ratio of troubled 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 earning money affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

WINSOUTH scored 14 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One indication that WINSOUTH is doing better than 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.