Safe and Sound

MID-CITIES

COMPTON, CA
3
Star Rating
MID-CITIES is an NCUA-insured credit union started in 1955 and currently headquartered in COMPTON, CA. The credit union has $21.1 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 9 full-time employees, the credit union has amassed loans and leases worth $11.9 million. Its 4,893 members currently have $18.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MID-CITIES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is essential. It acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, MID-CITIES received a score of 14 out of a possible 30 points, coming in below the national average of 15.26.

MID-CITIES had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem 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, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, MID-CITIES scored 32 out of a possible 40 points, lower than the national average of 38.15 points.

An above-average ratio of problem assets of 17.00 percent in our test was something to keep an eye on for MID-CITIES.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

MID-CITIES scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

MID-CITIES had an earnings ratio of -34.00 percent in our test, worse than the average for all credit unions, a sign that it's lagging behind 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.