Safe and Sound

MADISON EDUCATION ASSOC.

MADISON, FL
4
Star Rating
MADISON EDUCATION ASSOC. is a MADISON, FL-based, NCUA-insured credit union that opened its doors in 1963. Regulatory filings show the credit union having assets of $5.5 million, as of December 31, 2017.

MADISON EDUCATION ASSOC.'s 819 members currently have $4.5 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $2.4 million.

Overall, Bankrate believes that, as of December 31, 2017, MADISON EDUCATION ASSOC. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired 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 buffer against losses and affords 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 strength, capital is important. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, MADISON EDUCATION ASSOC. achieved a score of 22 out of a possible 30 points, above the national average of 15.65.

MADISON EDUCATION ASSOC. appears to be stronger than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

MADISON EDUCATION ASSOC. fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of MADISON EDUCATION ASSOC.'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 has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, MADISON EDUCATION ASSOC. scored 4 out of a possible 30, below the national average of 10.11.

One indication that MADISON EDUCATION ASSOC. is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.