Safe and Sound

SECURTRUST

Southaven, MS
5
Star Rating
SECURTRUST is an NCUA-insured credit union founded in 1949 and currently headquartered in Southaven, MS. As of June 30, 2017, the credit union held assets of $22.9 million.

Members have $16.9 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $16.9 million. Its 2,775 members currently have $18.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SECURTRUST exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major 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 is a crucial measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

SECURTRUST did better than the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, scoring 30 out of a possible 30 points.

SECURTRUST appears to be on more solid financial footing than its peers, with a capitalization ratio of 20.00 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 reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 5.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, SECURTRUST scored 20 out of a possible 30, above the national average of 10.31.

SECURTRUST had an earnings ratio of 10.00 percent in our test, higher than the average for all credit unions, an indication 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.