Safe and Sound

MIDCOAST

FREEPORT, ME
4
Star Rating
MIDCOAST is an NCUA-insured credit union started in 1956 and currently headquartered in FREEPORT, ME. The credit union holds $171.5 million in assets, according to December 31, 2017, regulatory filings.

Members have $126.9 million on deposit tended by 58 full-time employees. With that footprint, the credit union holds loans and leases worth $126.9 million. MIDCOAST's 15,139 members currently have $148.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDCOAST 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, MIDCOAST received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.

MIDCOAST had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

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 troubled assets, such as past-due 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, reducing earnings and increasing the risk of a future failure.

MIDCOAST scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of MIDCOAST's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

MIDCOAST scored 10 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that MIDCOAST is running ahead of 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.