Safe and Sound

COMPASS FINANCIAL

HIALEAH, FL
4
Star Rating
Started in 1936, COMPASS FINANCIAL is an NCUA-insured credit union headquartered in HIALEAH, FL. As of June 30, 2017, the credit union held assets of $25.8 million.

With 12 full-time employees, the credit union has amassed loans and leases worth $17.4 million. Its 2,786 members currently have $19.0 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

COMPASS FINANCIAL exceeded the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

COMPASS FINANCIAL appears to be more resilient than its peers, with a capitalization ratio of 15.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem 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, cutting down on 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, resulting in depressed earnings and potentially more risk of a failure in the future.

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

A below-average ratio of troubled assets of 6.00 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. Earnings may 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 times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, COMPASS FINANCIAL scored 0 out of a possible 30, below the national average of 10.31.

COMPASS FINANCIAL had an earnings ratio of -8.00 percent in our test, below the average for all credit unions, suggesting that it's running behind 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.