Safe and Sound

MOBILE POSTAL

Mobile, AL
4
Star Rating
MOBILE POSTAL is an NCUA-insured credit union founded in 1949 and currently headquartered in Mobile, AL. The credit union holds assets of $10.9 million, according to December 31, 2017, regulatory filings.

Members have $7.2 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $7.2 million. MOBILE POSTAL's 1,661 members currently have $9.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOBILE POSTAL 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 cushion against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial resilience, capital is crucial. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, MOBILE POSTAL scored 20 out of a possible 30 points, better than the national average of 15.65.

MOBILE POSTAL had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these types of assets may eventually have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, MOBILE POSTAL scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

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

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, MOBILE POSTAL scored 12 out of a possible 30, beating the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.