Safe and Sound

CITIZENS CHOICE

Natchez, MS
4
Star Rating
Founded in 1966, CITIZENS CHOICE is an NCUA-insured credit union based in Natchez, MS. The credit union holds assets of $1.1 million, according to December 31, 2017, regulatory filings.

Its 524 members currently have $571,639 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $514,179.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, CITIZENS CHOICE racked up 30 out of a possible 30 points, better than the national average of 15.65.

CITIZENS CHOICE appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these types of assets means a credit union may have to use capital to cover losses, reducing its equity buffer. 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.

CITIZENS CHOICE beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of CITIZENS CHOICE's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

CITIZENS CHOICE scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.