Safe and Sound

MOLINE MUNICIPAL

MOLINE, IL
5
Star Rating
MOLINE MUNICIPAL is a MOLINE, IL-based, NCUA-insured credit union started in 1936. As of December 31, 2017, the credit union had assets of $33.8 million.

With 7 full-time employees, the credit union has amassed loans and leases worth $24.6 million. Its 2,425 members currently have $28.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOLINE MUNICIPAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is valuable. From a safety and soundness perspective, the more capital, the better.

MOLINE MUNICIPAL achieved a score of 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

MOLINE MUNICIPAL's capitalization ratio of 22.00 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

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets could eventually require a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, MOLINE MUNICIPAL scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of MOLINE MUNICIPAL's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

MOLINE MUNICIPAL beat the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One sign that MOLINE MUNICIPAL is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.