Safe and Sound

NORTHEAST MISSISSIPPI

Amory, MS
4
Star Rating
Amory, MS-based NORTHEAST MISSISSIPPI is an NCUA-insured credit union started in 1964. Regulatory filings show the credit union having assets of $6.1 million, as of December 31, 2017.

With 3 full-time employees, the credit union currently holds loans and leases worth $4.3 million. Its 877 members currently have $3.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHEAST MISSISSIPPI exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate 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 important. It acts as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

NORTHEAST MISSISSIPPI did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

NORTHEAST MISSISSIPPI's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

NORTHEAST MISSISSIPPI fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

NORTHEAST MISSISSIPPI received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One indication that NORTHEAST MISSISSIPPI is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.