Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.
SOUTHERN MISSISSIPPI scored 24 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.