Safe and Sound

HEALTHPLUS

JACKSON, MS
3
Star Rating
HEALTHPLUS is a JACKSON, MS-based, NCUA-insured credit union that opened its doors in 1948. Regulatory filings show the credit union having $6.4 million in assets, as of December 31, 2017.

Members have $3.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.9 million. Its 2,677 members currently have $5.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTHPLUS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial stability, capital is key. When looking at safety and soundness, the higher the capital, the better.

HEALTHPLUS fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

HEALTHPLUS had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

HEALTHPLUS finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

HEALTHPLUS's ratio of problem assets was 0.00 percent in our test, below the national average and 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 long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

HEALTHPLUS did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

HEALTHPLUS had an earnings ratio of 0.00 percent in our test, better 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.