Safe and Sound

SOUTHERN COASTAL

BILOXI, MS
5
Star Rating
SOUTHERN COASTAL is a Biloxi, MS-based, NCUA-insured credit union dating back to 1973. Regulatory filings show the credit union having $9.7 million in assets, as of December 31, 2017.

Members have $7.5 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $7.5 million. Its 1,380 members currently have $7.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHERN COASTAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SOUTHERN COASTAL achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.

SOUTHERN COASTAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets suggests a credit union could eventually have to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

SOUTHERN COASTAL fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below 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 safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

SOUTHERN COASTAL exceeded the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

One sign that SOUTHERN COASTAL 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.