Safe and Sound

SOUTH CENTRAL

JACKSON, MI
4
Star Rating
SOUTH CENTRAL is a JACKSON, MI-based, NCUA-insured credit union started in 1954. The credit union has assets of $75.1 million, according to December 31, 2017, regulatory filings.

With 13 full-time employees, the credit union holds loans and leases worth $32.6 million. SOUTH CENTRAL's 7,658 members currently have $64.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH CENTRAL 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 major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

SOUTH CENTRAL did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

SOUTH CENTRAL had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, reducing its buffer of equity. 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, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, SOUTH CENTRAL scored 40 out of a possible 40 points, above the national average of 38.09 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

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

SOUTH CENTRAL scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that SOUTH CENTRAL is outperforming 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.