Safe and Sound

N. MISSISSIPPI HEALTH SERVICES EMP.

Tupelo, MS
4
Star Rating
Tupelo, MS-based N. MISSISSIPPI HEALTH SERVICES EMP. is an NCUA-insured credit union started in 1982. Regulatory filings show the credit union having assets of $12.9 million, as of December 31, 2017.

With 3 full-time employees, the credit union has amassed loans and leases worth $4.6 million. Its 3,226 members currently have $11.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, N. MISSISSIPPI HEALTH SERVICES EMP. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, N. MISSISSIPPI HEALTH SERVICES EMP. racked up 18 out of a possible 30 points, beating the national average of 15.65.

N. MISSISSIPPI HEALTH SERVICES EMP. had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets may eventually force a credit union to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a future failure.

N. MISSISSIPPI HEALTH SERVICES EMP. scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding 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 affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

N. MISSISSIPPI HEALTH SERVICES EMP. scored 8 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.