Safe and Sound

CENTRAL SUNBELT

Laurel, MS
5
Star Rating
CENTRAL SUNBELT is a Laurel, MS-based, NCUA-insured credit union that opened its doors in 1953. As of June 30, 2017, the credit union had assets of $212.8 million.

Thanks to the efforts of 79 full-time employees, the credit union currently holds loans and leases worth $80.1 million. Its 34,904 members currently have $178.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CENTRAL SUNBELT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial strength. It acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

CENTRAL SUNBELT beat out the national average of 15.26 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

CENTRAL SUNBELT appears to be more resilient than its peers, with a capitalization ratio of 15.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets means a credit union may eventually have 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, resulting in reduced earnings and potentially more risk of a failure in the future.

CENTRAL SUNBELT scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, CENTRAL SUNBELT scored 16 out of a possible 30, above the national average of 10.31.

CENTRAL SUNBELT had an earnings ratio of 7.00 percent in our test, above the average for all credit unions, suggesting 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.