Safe and Sound

UNITED METHODIST OF MISSISSIPPI

Booneville, MS
2
Star Rating
Booneville, MS-based UNITED METHODIST OF MISSISSIPPI is an NCUA-insured credit union started in 1961. The credit union has $863,438 in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $507,351. UNITED METHODIST OF MISSISSIPPI's 295 members currently have $801,929 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED METHODIST OF MISSISSIPPI exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is useful. It acts as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

UNITED METHODIST OF MISSISSIPPI fell below the national average of 15.65 on our test to measure capital adequacy, scoring 4 out of a possible 30 points.

UNITED METHODIST OF MISSISSIPPI's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

UNITED METHODIST OF MISSISSIPPI did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, UNITED METHODIST OF MISSISSIPPI scored 0 out of a possible 30, lower than the national average of 10.11.

One indication that UNITED METHODIST OF MISSISSIPPI is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.