Safe and Sound

EAST CENTRAL MISSISSIPPI

NEWTON, MS
3
Star Rating
EAST CENTRAL MISSISSIPPI is a NEWTON, MS-based, NCUA-insured credit union dating back to 1971. As of December 31, 2017, the credit union held assets of $4.8 million.

With 4 full-time employees, the credit union currently holds loans and leases worth $2.1 million. Its 1,923 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EAST CENTRAL MISSISSIPPI exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

EAST CENTRAL MISSISSIPPI scored 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

EAST CENTRAL MISSISSIPPI had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets may 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 money, pushing down earnings and increasing the chances of a future failure.

EAST CENTRAL MISSISSIPPI came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

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 buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

EAST CENTRAL MISSISSIPPI received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that EAST CENTRAL MISSISSIPPI 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.