Safe and Sound

FORREST COUNTY TEACHERS

Hattiesburg, MS
2
Star Rating
Hattiesburg, MS-based FORREST COUNTY TEACHERS is an NCUA-insured credit union founded in 1961. The credit union has $248,826 in assets, according to December 31, 2017, regulatory filings.

FORREST COUNTY TEACHERS's 293 members currently have $205,360 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $126,333.

Overall, Bankrate believes that, as of December 31, 2017, FORREST COUNTY TEACHERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major 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 is a key measurement of a credit union's financial strength. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

FORREST COUNTY TEACHERS achieved a score of 24 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

FORREST COUNTY TEACHERS's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually require a credit union to use capital to cover losses, decreasing 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of troubled 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 making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

FORREST COUNTY TEACHERS scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

FORREST COUNTY TEACHERS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.