Safe and Sound

TOMBIGBEE

AMORY, MS
4
Star Rating
AMORY, MS-based TOMBIGBEE is an NCUA-insured credit union founded in 1966. As of December 31, 2017, the credit union had assets of $5.8 million.

TOMBIGBEE's 1,009 members currently have $5.0 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $2.3 million.

Overall, Bankrate believes that, as of December 31, 2017, TOMBIGBEE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, TOMBIGBEE achieved a score of 18 out of a possible 30 points, above the national average of 15.65.

TOMBIGBEE appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, TOMBIGBEE scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A lower-than-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

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

TOMBIGBEE scored 8 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One indication that the credit union is outperforming 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.