Safe and Sound

ARMSTRONG

JACKSON, MS
4
Star Rating
Founded in 1956, ARMSTRONG is an NCUA-insured credit union headquartered in JACKSON, MS. The credit union holds assets of $2.6 million, according to December 31, 2017, regulatory filings.

Members have $1.9 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $1.9 million. ARMSTRONG's 389 members currently have $2.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARMSTRONG exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial strength, capital is valuable. From a safety and soundness perspective, more capital is preferred.

ARMSTRONG racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

ARMSTRONG had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

ARMSTRONG scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

ARMSTRONG scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

ARMSTRONG had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.