Safe and Sound

MAGNIFY

MULBERRY, FL
4
Star Rating
Started in 1950, MAGNIFY is an NCUA-insured credit union based in MULBERRY, FL. The credit union holds assets of $78.1 million, according to December 31, 2017, regulatory filings.

Members have $45.3 million on deposit tended by 22 full-time employees. With that footprint, the credit union holds loans and leases worth $45.3 million. Its 6,105 members currently have $59.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MAGNIFY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

MAGNIFY beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

MAGNIFY's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MAGNIFY scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

Troubled assets made up 0.00 percent of MAGNIFY's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, MAGNIFY scored 8 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.