Safe and Sound

M.A.B.C.

PHILADELPHIA, PA
4
Star Rating
M.A.B.C. is an NCUA-insured credit union started in 1986 and currently headquartered in PHILADELPHIA, PA. Regulatory filings show the credit union having $133,257 in assets, as of December 31, 2017.

The credit union holds loans and leases worth $46,920. M.A.B.C.'s 227 members currently have $114,472 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, M.A.B.C. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American 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 valuable. It acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, M.A.B.C. scored 20 out of a possible 30 points, better than the national average of 15.65.

M.A.B.C.'s capitalization ratio of 20.00 percent in our test was above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, M.A.B.C. scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, M.A.B.C. scored 8 out of a possible 30, coming in below the national average of 10.11.

M.A.B.C. had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.