Safe and Sound

MOSAIC

HARRISONBURG, VA
3
Star Rating
Founded in 1986, MOSAIC is an NCUA-insured credit union headquartered in HARRISONBURG, VA. The credit union has assets of $14.8 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 9 full-time employees, the credit union holds loans and leases worth $13.2 million. Its 4,312 members currently have $13.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOSAIC exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is useful. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, MOSAIC received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

MOSAIC had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets may eventually be required to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

MOSAIC scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

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

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, MOSAIC scored 16 out of a possible 30, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's beating 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.