Safe and Sound

MID-STATE

CARTERET, NJ
4
Star Rating
MID-STATE is a CARTERET, NJ-based, NCUA-insured credit union dating back to 1950. Regulatory filings show the credit union having $16.9 million in assets, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $9.4 million. Its 1,443 members currently have $12.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MID-STATE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It acts as a buffer against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, MID-STATE received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

MID-STATE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these types of assets could 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, MID-STATE scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

MID-STATE scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.