Safe and Sound

MUTUAL SAVINGS

Birmingham, AL
2
Star Rating
Founded in 1936, MUTUAL SAVINGS is an NCUA-insured credit union headquartered in Birmingham, AL. Regulatory filings show the credit union having $170.0 million in assets, as of December 31, 2017.

With 86 full-time employees, the credit union has amassed loans and leases worth $126.6 million. Its 30,418 members currently have $142.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MUTUAL SAVINGS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. 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 affords protection for members during times of financial trouble for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

MUTUAL SAVINGS fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 8 out of a possible 30 points.

MUTUAL SAVINGS appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than 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, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

MUTUAL SAVINGS underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

MUTUAL SAVINGS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.