Safe and Sound

SOUTHERN MISSISSIPPI

HATTIESBURG, MS
3
Star Rating
SOUTHERN MISSISSIPPI is an NCUA-insured credit union started in 1956 and currently headquartered in HATTIESBURG, MS. The credit union has $40.9 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 23 full-time employees, the credit union currently holds loans and leases worth $27.8 million. Its 6,882 members currently have $36.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHERN MISSISSIPPI exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is essential. When it comes to safety and soundness, more capital is better.

SOUTHERN MISSISSIPPI fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

SOUTHERN MISSISSIPPI appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

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.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

SOUTHERN MISSISSIPPI beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One sign that SOUTHERN MISSISSIPPI is doing better than 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.