Safe and Sound

MIDLAND CO-OP

Minneapolis, MN
3
Star Rating
MIDLAND CO-OP is an NCUA-insured credit union founded in 1955 and currently based in Minneapolis, MN. As of December 31, 2017, the credit union had assets of $9.7 million.

Members have $4.2 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.2 million. Its 1,595 members currently have $8.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDLAND CO-OP exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

MIDLAND CO-OP came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

MIDLAND CO-OP's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, shrinking 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 interest for the credit union, decreasing earnings and increasing the risk of a future failure.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, MIDLAND CO-OP scored 2 out of a possible 30, falling short of the national average of 10.11.

MIDLAND CO-OP had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.