Safe and Sound

MIDWESTERN STATE UNIVERSITY

WICHITA FALLS, TX
3
Star Rating
Started in 1955, MIDWESTERN STATE UNIVERSITY is an NCUA-insured credit union based in WICHITA FALLS, TX. The credit union has assets of $6.2 million, according to December 31, 2017, regulatory filings.

Members have $2.2 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.2 million. Its 889 members currently have $5.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDWESTERN STATE UNIVERSITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

MIDWESTERN STATE UNIVERSITY racked up 22 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

MIDWESTERN STATE UNIVERSITY had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, cutting down on its equity buffer. 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.

On Bankrate's asset quality test, MIDWESTERN STATE UNIVERSITY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, MIDWESTERN STATE UNIVERSITY scored 0 out of a possible 30, below the national average of 10.11.

One sign that the credit union 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.