Safe and Sound

MOBILOIL

BEAUMONT, TX
5
Star Rating
BEAUMONT, TX-based MOBILOIL is an NCUA-insured credit union started in 1935. The credit union has assets of $788.0 million, according to December 31, 2017, regulatory filings.

With 178 full-time employees, the credit union has amassed loans and leases worth $600.6 million. Its 51,886 members currently have $608.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOBILOIL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key 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 acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an a credit union's financial stability, capital is useful. From a safety and soundness perspective, more capital is better.

MOBILOIL scored below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

MOBILOIL's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union may have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

MOBILOIL scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

MOBILOIL beat the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

MOBILOIL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.