Safe and Sound

MIDFLORIDA

Lakeland, FL
5
Star Rating
Started in 1954, MIDFLORIDA is an NCUA-insured credit union based in Lakeland, FL. The credit union has $3.06 billion in assets, according to December 31, 2017, regulatory filings.

Members have $2.29 billion on deposit tended by 678 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.29 billion. MIDFLORIDA's 286,001 members currently have $2.53 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDFLORIDA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

MIDFLORIDA received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

MIDFLORIDA had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

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

MIDFLORIDA exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive 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. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

MIDFLORIDA did above-average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.

One sign that MIDFLORIDA is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.