Safe and Sound

MOLINE MUNICIPAL

MOLINE, IL
5
Star Rating
MOLINE, IL-based MOLINE MUNICIPAL is an NCUA-insured credit union started in 1936. The credit union has $32.6 million in assets, according to June 30, 2017, regulatory filings.

Members have $22.7 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $22.7 million. MOLINE MUNICIPAL's 2,430 members currently have $27.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MOLINE MUNICIPAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is important. When it comes to safety and soundness, the higher the capital, the better.

MOLINE MUNICIPAL scored 22 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

MOLINE MUNICIPAL appears to be on more solid financial footing than its peers, with a capitalization ratio of 16.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, MOLINE MUNICIPAL scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A below-average ratio of problem assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, MOLINE MUNICIPAL scored 14 out of a possible 30, beating the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.