Safe and Sound

I. H. MISSISSIPPI VALLEY

Moline, IL
4
Star Rating
Moline, IL-based I. H. MISSISSIPPI VALLEY is an NCUA-insured credit union founded in 1936. As of June 30, 2017, the credit union had assets of $1.20 billion.

Thanks to the work of 276 full-time employees, the credit union holds loans and leases worth $940.1 million. Its 113,811 members currently have $1.02 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, I. H. MISSISSIPPI VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

I. H. MISSISSIPPI VALLEY finished below the national average of 15.26 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

I. H. MISSISSIPPI VALLEY's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

I. H. MISSISSIPPI VALLEY scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.

The credit union's ratio of problem assets was 8.00 percent in our test, above the national average and something to watch.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

I. H. MISSISSIPPI VALLEY beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 8.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.