Safe and Sound

BRIGHTSTAR

FORT LAUDERDALE, FL
4
Star Rating
BRIGHTSTAR is a FORT LAUDERDALE, FL-based, NCUA-insured credit union started in 1946. The credit union has assets of $456.0 million, according to June 30, 2017, regulatory filings.

Members have $275.5 million on deposit tended by 167 full-time employees. With that footprint, the credit union holds loans and leases worth $275.5 million. BRIGHTSTAR's 54,705 members currently have $403.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BRIGHTSTAR exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

BRIGHTSTAR scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

BRIGHTSTAR had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, BRIGHTSTAR scored 40 out of a possible 40 points, above the national average of 38.15 points.

A below-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

BRIGHTSTAR received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign that BRIGHTSTAR is outperforming its peers in this area was its earnings ratio of 5.00 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.