Safe and Sound

MAGNIFY

MULBERRY, FL
4
Star Rating
Started in 1950, MAGNIFY is an NCUA-insured credit union headquartered in MULBERRY, FL. As of June 30, 2017, the credit union held assets of $78.9 million.

Members have $42.1 million on deposit tended by 24 full-time employees. With that footprint, the credit union holds loans and leases worth $42.1 million. Its 6,284 members currently have $59.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MAGNIFY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is essential. When it comes to safety and soundness, the more capital, the better.

MAGNIFY beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, achieving a score of 16 out of a possible 30 points.

MAGNIFY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, reducing its equity cushion. 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, resulting in lower earnings and potentially more risk of a future failure.

MAGNIFY fell below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

MAGNIFY's ratio of problem assets was 12.00 percent in our test, higher than the national average and a potential cause for concern.

Earnings score

How successful a credit union is at earning 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, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

MAGNIFY received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 2.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.