Safe and Sound

MISSOURI CENTRAL

Lees Summit, MO
4
Star Rating
MISSOURI CENTRAL is an NCUA-insured credit union started in 1931 and currently based in Lees Summit, MO. As of December 31, 2017, the credit union held assets of $56.6 million.

With 13 full-time employees, the credit union has amassed loans and leases worth $27.5 million. Its 8,362 members currently have $50.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSOURI CENTRAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key 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 buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

MISSOURI CENTRAL scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

MISSOURI CENTRAL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets means a credit union may 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 no longer earning money, reducing earnings and elevating the risk of a future failure.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than 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, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, MISSOURI CENTRAL scored 8 out of a possible 30, failing to reach the national average of 10.11.

One indication that MISSOURI CENTRAL is beating 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.