Asset Quality Score
This test is intended 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 loans.
Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, MIDSOUTH COMMUNITY scored 40 out of a possible 40 points, beating the national average of 38.09 points.
The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.