Safe and Sound

TWIN STATES

Columbus, MS
4
Star Rating
Started in 1965, TWIN STATES is an NCUA-insured credit union headquartered in Columbus, MS. As of December 31, 2017, the credit union had assets of $7.3 million.

With 4 full-time employees, the credit union currently holds loans and leases worth $5.9 million. TWIN STATES's 1,566 members currently have $5.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TWIN STATES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

TWIN STATES scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 8 out of a possible 30 points.

TWIN STATES's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, decreasing 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 money, reducing earnings and elevating the chances of a failure in the future.

TWIN STATES finished below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 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 profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

TWIN STATES scored 30 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One indication that TWIN STATES 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.