Safe and Sound

MISSISSIPPI CENTRAL

Morton, MS
5
Star Rating
MISSISSIPPI CENTRAL is an NCUA-insured credit union started in 1986 and currently based in Morton, MS. As of December 31, 2017, the credit union had assets of $3.4 million.

Members have $2.6 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.6 million. Its 913 members currently have $2.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSISSIPPI CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is valuable. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, MISSISSIPPI CENTRAL racked up 28 out of a possible 30 points, exceeding the national average of 15.65.

MISSISSIPPI CENTRAL had a capitalization ratio of 28.00 percent in our test, above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

MISSISSIPPI CENTRAL beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

MISSISSIPPI CENTRAL outperformed the average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.

MISSISSIPPI CENTRAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.