Safe and Sound

MCINTOSH CHEMICAL

MC INTOSH, AL
4
Star Rating
MCINTOSH CHEMICAL is a MC INTOSH, AL-based, NCUA-insured credit union founded in 1962. Regulatory filings show the credit union having $23.3 million in assets, as of December 31, 2017.

With 5 full-time employees, the credit union holds loans and leases worth $7.4 million. MCINTOSH CHEMICAL's 2,415 members currently have $19.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MCINTOSH CHEMICAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis 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

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

MCINTOSH CHEMICAL scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

MCINTOSH CHEMICAL had a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, cutting down on its cushion 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 lower earnings and potentially more risk of a failure in the future.

MCINTOSH CHEMICAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

MCINTOSH CHEMICAL received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that MCINTOSH CHEMICAL is doing better than 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.