HERITAGE SOUTH

Charter #68586 | AL

100M-500M (1077 CUs) Micro
20 100M-500M in AL

HERITAGE SOUTH has 2 strengths but faces 11 concerns

Key Strengths

Areas where this CU excels compared to peers

  • + Emerging Performer: Top 27.8% in tier
  • + Net Interest Margin 0.72% above tier average

Key Concerns

Areas that may need attention

  • - Efficiency Drag: Bottom 2.4% in tier
  • - Deposit Outflow: Bottom 8.5% in tier
  • - Shrinking Wallet Share: Bottom 19.4% in tier
  • - Accelerating Exit Risk: Bottom 19.5% in tier
  • - Membership Headwinds: Bottom 30.0% in tier
  • - Institutional Decline: Bottom 31.4% in tier
  • - Stagnation Risk: Bottom 32.5% in tier
  • - ROA 0.46% below tier average
  • - Efficiency ratio 10.70% above tier (higher cost structure)
  • - Deposit Growth Rate: Bottom 6.3% in tier
  • - Asset Growth Rate: Bottom 8.5% in tier

Core Metrics

As of 2025-Q3

Metric Current vs Tier Tier Avg State Avg (AL) National Avg Tier Percentile
Members 15,544
-0.8% YoY+0.1% QoQ
 -84 15,628
-3.4% YoY
 29,240
-2.8% YoY
 33,089
+6.1% YoY
 59th in tier
Assets $180.2M
-2.4% YoY+2.2% QoQ
 $-51.1M $231.3M
-0.0% YoY
 $436.7M
+7.4% YoY
 $547.7M
+7.8% YoY
 44th in tier
Loans $130.8M
-0.9% YoY-1.1% QoQ
 $-17.0M $147.8M
-1.4% YoY
 $258.0M
+6.8% YoY
 $388.7M
+8.6% YoY
 53rd in tier
Deposits $163.4M
-3.1% YoY+6.4% QoQ
 $-36.9M $200.3M
-0.0% YoY
 $382.5M
+6.8% YoY
 $464.6M
+9.3% YoY
 47th in tier
ROA 0.3%
+21.0% YoY+140.9% QoQ
 -0.5% 0.8%
+15.5% YoY
 0.8%
+31.6% YoY
 0.7%
+273.4% YoY
 Bottom 20.1% in tier
NIM 4.3%
+20.8% YoY+0.5% QoQ
 +0.7% 3.6%
+6.9% YoY
 3.7%
+6.4% YoY
 3.7%
+5.0% YoY
 Top 13.7% in tier
Efficiency Ratio 88.0%
-3.5% YoY-3.6% QoQ
 +10.7% 77.3%
-3.0% YoY
 76.4%
-6.2% YoY
 79.1%
-3.3% YoY
 Top 14.7% in tier
Delinquency Rate 0.7%
-4.8% YoY+28.8% QoQ
 -0.2 0.9%
+7.6% YoY
 1.7%
+18.9% YoY
 1.2%
-0.9% YoY
 49th in tier
Loan To Share 80.0%
+2.3% YoY-7.0% QoQ
 +7.3% 72.7%
-1.5% YoY
 60.8%
-1.6% YoY
 68.0%
-1.7% YoY
 63rd in tier
AMR $18,928
-1.3% YoY+2.9% QoQ
 $-5K $24,363
+2.9% YoY
 $17,062
+2.3% YoY
 $19,418
+1.3% YoY
 28th in tier
CD Concentration 27.1%
-20.8% YoY+12.1% QoQ
 +2.7% 24.4%
+4.2% YoY
 20.8%
+2.9% YoY
 19.6%
+6.2% YoY
 50th in tier
Indirect Auto % 7.5%
-3.7% YoY-4.4% QoQ
 -6.5% 14.0%
-5.8% YoY
 5.4%
-6.7% YoY
 7.9%
-2.9% YoY
 50th in tier

Signature Analysis

Strengths (1)

Emerging Performer

growth
#523 of 627 • Top 27.8% in tier

Profitable credit union with positive returns. May represent growth potential worth exploring.

Why This Signature
Return on Assets: 0.33%
(Tier: 0.77%, National: 0.71%)
but worse than tier avg
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
but worse than tier avg
627 of 1077 Community CUs have this signature | 852 nationally
↑ Growing +13 CUs YoY | Rank improving

Concerns (7)

Efficiency Drag

risk
#43 of 521 • Bottom 2.4% in tier

High efficiency ratio (>80%) indicates elevated operating costs relative to revenue. Margin improvement opportunities may exist.

Why This Signature
Efficiency Ratio: 87.98%
(Tier: 77.15%, National: 79.10%)
worse than tier avg
ROA Change (YoY): 0.06% points
(Tier: 0.11% points, National: 0.05% points)
worse than tier avg
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
521 of 1077 Community CUs have this signature | 624 nationally
↓ Shrinking -113 CUs YoY | Rank improving

Deposit Outflow

decline
#51 of 114 • Bottom 8.5% in tier

Members staying but deposits leaving. They're losing to higher-yield competitors - rate pressure is real.

Why This Signature
Deposit Growth (YoY): -3.07%
(Tier: 4.79%, National: 12.00%)
worse than tier avg
Total Assets: $180.16M
(Tier: $231.30M, National: $547.69M)
worse than tier avg
114 of 1077 Community CUs have this signature | 143 nationally
↓ Shrinking -169 CUs YoY | New qualifier

Shrinking Wallet Share

decline
#194 of 244 • Bottom 19.4% in tier

Average member relationship declining year-over-year. Members may be moving money elsewhere or reducing engagement.

Why This Signature
AMR Growth (YoY): -1.30%
(Tier: 3.68%, National: 4.19%)
worse than tier avg
244 of 1077 Community CUs have this signature | 346 nationally
↓ Shrinking -221 CUs YoY | New qualifier

Accelerating Exit Risk

decline
#52 of 58 • Bottom 19.5% in tier

Members leaving AND taking more deposits with them. This compounds quickly - urgent need for retention strategy.

Why This Signature
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
AMR Growth (YoY): -1.30%
(Tier: 3.68%, National: 4.19%)
worse than tier avg
58 of 1077 Community CUs have this signature | 73 nationally
↓ Shrinking -89 CUs YoY | New qualifier

Membership Headwinds

decline
#494 of 550 • Bottom 30.0% in tier

Membership declining year-over-year. They need solutions to stop the bleeding before it impacts revenue.

Why This Signature
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
550 of 1077 Community CUs have this signature | 648 nationally
→ Stable (555→550 CUs) -5 CUs YoY | New qualifier

Institutional Decline

decline
#248 of 256 • Bottom 31.4% in tier

Both members and loans declining - the institution is contracting. Leadership is likely under pressure to reverse course.

Why This Signature
Total Assets: $180.16M
(Tier: $231.30M, National: $547.69M)
worse than tier avg
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
Loan Growth (YoY): -0.89%
(Tier: 3.64%, National: 36.38%)
worse than tier avg
256 of 1077 Community CUs have this signature | 293 nationally
↓ Shrinking -43 CUs YoY | New qualifier

Stagnation Risk

risk
#535 of 550 • Bottom 32.5% in tier

Membership is declining. If profitability remains stable, current success may mask future risk from a shrinking member base.

Why This Signature
Return on Assets: 0.33%
(Tier: 0.77%, National: 0.71%)
worse than tier avg
Member Growth (YoY): -0.82%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
Avg Member Relationship: $18.9K
(Tier: $25.0K, National: $19.4K)
worse than tier avg
CD Concentration: 27.11%
(Tier: 24.41%, National: 19.60%)
worse than tier avg
550 of 1077 Community CUs have this signature | 648 nationally
→ Stable (555→550 CUs) -5 CUs YoY | New qualifier

Metric Rankings

See how this credit union ranks across all tracked metrics compared to peers.

Strengths: Metrics in the top 25% (75th percentile or higher) | Concerns: Metrics in the bottom 25% (25th percentile or lower)

Comparing against 1077 peers in tier

Top Strengths (2 metrics)

148
Net Interest Margin (NIM)
profitability
Value: 4.31%
Peer Avg: 3.58%
#148 of 1077 Top 13.6% in 100M-500M tier
268
Fee Income Per Member
profitability
Value: $214.19
Peer Avg: $174.31
#268 of 1077 Top 24.8% in 100M-500M tier

Top Weaknesses (7 metrics)

1010
Deposit Growth Rate
growth
Value: -3.07%
Peer Avg: 4.69%
#1010 of 1077 Bottom 6.3% in 100M-500M tier
986
Asset Growth Rate
growth
Value: -2.39%
Peer Avg: 4.70%
#986 of 1077 Bottom 8.5% in 100M-500M tier
920
Efficiency Ratio
profitability
Value: 87.98%
Peer Avg: 77.28%
#920 of 1077 Bottom 14.7% in 100M-500M tier
920
AMR Growth Rate
growth
Value: -1.30%
Peer Avg: 3.64%
#920 of 1077 Bottom 14.7% in 100M-500M tier
910
Members Per Employee (MPE)
engagement
Value: 242.875
Peer Avg: 332.881
#910 of 1077 Bottom 15.6% in 100M-500M tier
860
Return on Assets (ROA)
profitability
Value: 0.33%
Peer Avg: 0.79%
#860 of 1077 Bottom 20.2% in 100M-500M tier
837
First Mortgage Concentration (%)
balance_sheet
Value: 43.42%
Peer Avg: 30.43%
#837 of 1077 Bottom 22.4% in 100M-500M tier