Safe and Sound

MISSISSIPPI NATIONAL GUARD

JACKSON, MS
3
Star Rating
MISSISSIPPI NATIONAL GUARD is a JACKSON, MS-based, NCUA-insured credit union that opened its doors in 1962. The credit union has $19.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 3 full-time employees, the credit union currently holds loans and leases worth $15.0 million. MISSISSIPPI NATIONAL GUARD's 2,254 members currently have $17.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSISSIPPI NATIONAL GUARD exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MISSISSIPPI NATIONAL GUARD received a score of 10 out of a possible 30 points, less than the national average of 15.65.

MISSISSIPPI NATIONAL GUARD's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually be required 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 no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, MISSISSIPPI NATIONAL GUARD scored 24 out of a possible 40 points, failing to reach the national average of 38.09 points.

MISSISSIPPI NATIONAL GUARD's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

MISSISSIPPI NATIONAL GUARD received above-average marks on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.