Safe and Sound

VICKSBURG RAILROAD

Vicksburg, MS
4
Star Rating
Vicksburg, MS-based VICKSBURG RAILROAD is an NCUA-insured credit union started in 1934. As of December 31, 2017, the credit union held assets of $11.0 million.

Thanks to the efforts of 3 full-time employees, the credit union holds loans and leases worth $6.7 million. VICKSBURG RAILROAD's 1,212 members currently have $7.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VICKSBURG RAILROAD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important 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 affords protection for members during periods of financial trouble for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial resilience. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, VICKSBURG RAILROAD scored 30 out of a possible 30 points, beating out the national average of 15.65.

VICKSBURG RAILROAD appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

VICKSBURG RAILROAD finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of VICKSBURG RAILROAD's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, VICKSBURG RAILROAD scored 2 out of a possible 30, less than the national average of 10.11.

VICKSBURG RAILROAD had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of its peers in this area.

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.