Safe and Sound

NATCHEZ EDUCATORS

Natchez, MS
4
Star Rating
NATCHEZ EDUCATORS is a NATCHEZ, MS-based, NCUA-insured credit union that opened its doors in 1961. The credit union has $1.4 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $429,708. Its 540 members currently have $883,963 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NATCHEZ EDUCATORS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown 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 is an essential measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NATCHEZ EDUCATORS racked up 30 out of a possible 30 points, above the national average of 15.65.

NATCHEZ EDUCATORS's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of NATCHEZ EDUCATORS's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, NATCHEZ EDUCATORS scored 0 out of a possible 30, failing to reach the national average of 10.11.

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