Safe and Sound

CENTRAL CREDIT UNION OF FLORIDA

Pensacola, FL
4
Star Rating
Founded in 1962, CENTRAL CREDIT UNION OF FLORIDA is an NCUA-insured credit union based in Pensacola, FL. The credit union has $153.1 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 74 full-time employees, the credit union holds loans and leases worth $97.1 million. CENTRAL CREDIT UNION OF FLORIDA's 15,610 members currently have $133.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL CREDIT UNION OF FLORIDA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. 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 experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial stability, capital is valuable. When looking at safety and soundness, the more capital, the better.

CENTRAL CREDIT UNION OF FLORIDA received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

CENTRAL CREDIT UNION OF FLORIDA appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, CENTRAL CREDIT UNION OF FLORIDA scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of CENTRAL CREDIT UNION OF FLORIDA's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

CENTRAL CREDIT UNION OF FLORIDA fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

CENTRAL CREDIT UNION OF FLORIDA had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.