Safe and Sound

KEESLER

Biloxi, MS
5
Star Rating
KEESLER is a Biloxi, MS-based, NCUA-insured credit union founded in 1947. Regulatory filings show the credit union having assets of $2.57 billion, as of December 31, 2017.

Members have $1.69 billion on deposit tended by 552 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.69 billion. KEESLER's 210,730 members currently have $2.17 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KEESLER 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 important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial trouble for the credit union. It follows then that an institution's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, KEESLER achieved a score of 20 out of a possible 30 points, above the national average of 15.65.

KEESLER's capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, reducing 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 diminished earnings and potentially more risk of a future failure.

KEESLER scored 40 out of a possible 40 points on Bankrate's test of asset quality, 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, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

KEESLER scored 16 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

KEESLER had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.