Safe and Sound

COMMFIRST

JACKSON, MS
5
Star Rating
JACKSON, MS-based COMMFIRST is an NCUA-insured credit union started in 1954. The credit union holds $10.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 5 full-time employees, the credit union holds loans and leases worth $6.6 million. Its 2,410 members currently have $8.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMFIRST 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 major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, COMMFIRST scored 24 out of a possible 30 points, beating the national average of 15.65.

COMMFIRST appears to be on more solid financial footing than its peers, with a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

COMMFIRST scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

COMMFIRST scored 22 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

One indication that COMMFIRST is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.