Safe and Sound

MISSISSIPPI HIGHWAY SAFTY PAT

Jackson, MS
5
Star Rating
MISSISSIPPI HIGHWAY SAFTY PAT is an NCUA-insured credit union started in 1964 and currently based in Jackson, MS. Regulatory filings show the credit union having assets of $11.0 million, as of December 31, 2017.

Members have $4.4 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.4 million. Its 1,392 members currently have $8.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSISSIPPI HIGHWAY SAFTY PAT exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is crucial. It works as a cushion against losses and provides protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MISSISSIPPI HIGHWAY SAFTY PAT achieved a score of 30 out of a possible 30 points, beating the national average of 15.65.

MISSISSIPPI HIGHWAY SAFTY PAT had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets means a credit union could have to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

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

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

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, MISSISSIPPI HIGHWAY SAFTY PAT scored 8 out of a possible 30, coming in below the national average of 10.11.

MISSISSIPPI HIGHWAY SAFTY PAT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.