Safe and Sound

COMPASS FINANCIAL

HIALEAH, FL
3
Star Rating
COMPASS FINANCIAL is a HIALEAH, FL-based, NCUA-insured credit union dating back to 1936. As of December 31, 2017, the credit union had assets of $23.6 million.

Thanks to the efforts of 11 full-time employees, the credit union currently holds loans and leases worth $16.2 million. COMPASS FINANCIAL's 2,678 members currently have $19.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMPASS FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is essential. It works as a buffer against losses and as protection for members during times of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

COMPASS FINANCIAL scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

COMPASS FINANCIAL had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, COMPASS FINANCIAL scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 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 making money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

COMPASS FINANCIAL scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

COMPASS FINANCIAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's running ahead of 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.