Safe and Sound

1ST MISSISSIPPI

Meridian, MS
5
Star Rating
1ST MISSISSIPPI is a Meridian, MS-based, NCUA-insured credit union started in 1972. Regulatory filings show the credit union having $58.2 million in assets, as of December 31, 2017.

Thanks to the work of 25 full-time employees, the credit union has amassed loans and leases worth $18.3 million. 1ST MISSISSIPPI's 10,115 members currently have $40.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, 1ST MISSISSIPPI 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 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 an important measurement of a credit union's financial strength. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

1ST MISSISSIPPI beat out the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

1ST MISSISSIPPI appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types 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 thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

1ST MISSISSIPPI scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

1ST MISSISSIPPI scored 8 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

1ST MISSISSIPPI had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.