Safe and Sound

BROWARD HEALTHCARE

FORT LAUDERDALE, FL
4
Star Rating
Founded in 1957, BROWARD HEALTHCARE is an NCUA-insured credit union headquartered in FORT LAUDERDALE, FL. The credit union has $72.7 million in assets, according to December 31, 2017, regulatory filings.

Members have $28.8 million on deposit tended by 17 full-time employees. With that footprint, the credit union holds loans and leases worth $28.8 million. Its 9,221 members currently have $64.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BROWARD HEALTHCARE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BROWARD HEALTHCARE received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

BROWARD HEALTHCARE had a capitalization ratio of 10.00 percent in our test, worse than 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 estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

BROWARD HEALTHCARE did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of BROWARD HEALTHCARE's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

BROWARD HEALTHCARE outperformed the average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.