Safe and Sound

SOUTH FLORIDA

MIAMI, FL
4
Star Rating
MIAMI, FL-based SOUTH FLORIDA is an NCUA-insured credit union started in 1978. The credit union has assets of $34.7 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 11 full-time employees, the credit union has amassed loans and leases worth $25.1 million. SOUTH FLORIDA's 3,988 members currently have $27.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SOUTH FLORIDA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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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. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, SOUTH FLORIDA received a score of 12 out of a possible 30 points, failing to reach the national average of 15.26.

SOUTH FLORIDA had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

SOUTH FLORIDA scored above the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 5.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

SOUTH FLORIDA scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.31.

SOUTH FLORIDA had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with 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.