Safe and Sound

MISSISSIPPI FARM BUREAU EMPLOYEES

JACKSON, MS
4
Star Rating
JACKSON, MS-based MISSISSIPPI FARM BUREAU EMPLOYEES is an NCUA-insured credit union started in 1958. As of December 31, 2017, the credit union held assets of $14.8 million.

Thanks to the work of 3 full-time employees, the credit union has amassed loans and leases worth $3.5 million. Its 1,355 members currently have $13.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSISSIPPI FARM BUREAU EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, MISSISSIPPI FARM BUREAU EMPLOYEES racked up 16 out of a possible 30 points, beating the national average of 15.65.

MISSISSIPPI FARM BUREAU EMPLOYEES had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

This test is intended 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 mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its buffer of equity. 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 lower earnings and potentially more risk of a failure in the future.

MISSISSIPPI FARM BUREAU EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

A below-average ratio of problem 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 earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

MISSISSIPPI FARM BUREAU EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that MISSISSIPPI FARM BUREAU EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.