Safe and Sound

MISSISSIPPI DHS

JACKSON, MS
5
Star Rating
Started in 1952, MISSISSIPPI DHS is an NCUA-insured credit union headquartered in JACKSON, MS. The credit union holds $7.8 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $3.5 million. MISSISSIPPI DHS's 2,383 members currently have $6.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MISSISSIPPI DHS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

MISSISSIPPI DHS exceeded the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

MISSISSIPPI DHS appears to be more resilient than its peers, with a capitalization ratio of 17.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

MISSISSIPPI DHS scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.

MISSISSIPPI DHS's ratio of troubled assets was 7.00 percent in our test, the same as the national average.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

MISSISSIPPI DHS scored 12 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

One indication that MISSISSIPPI DHS is doing better than its peers in this area was its earnings ratio of 6.00 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.