Safe and Sound

MIDWEST AMERICA

Fort Wayne, IN
5
Star Rating
MIDWEST AMERICA is an NCUA-insured credit union founded in 1936 and currently based in Fort Wayne, IN. Regulatory filings show the credit union having assets of $568.1 million, as of June 30, 2017.

Thanks to the efforts of 165 full-time employees, the credit union holds loans and leases worth $450.5 million. Its 56,014 members currently have $456.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MIDWEST AMERICA exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial fortitude, capital is key. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MIDWEST AMERICA racked up 18 out of a possible 30 points, better than the national average of 15.26.

MIDWEST AMERICA's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, an indication that it's stronger than its peers.

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 unpaid mortgages.

A credit union with lots of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

MIDWEST AMERICA scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.15.

MIDWEST AMERICA's ratio of problem assets was 1.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, MIDWEST AMERICA scored 16 out of a possible 30, beating the national average of 10.31.

MIDWEST AMERICA had an earnings ratio of 7.00 percent in our test, above the average for all credit unions, a sign 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.