Safe and Sound

ECCO

Pace, FL
5
Star Rating
Started in 1956, ECCO is an NCUA-insured credit union headquartered in Pace, FL. Regulatory filings show the credit union having assets of $23.6 million, as of December 31, 2017.

Members have $11.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $11.9 million. ECCO's 1,058 members currently have $19.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ECCO exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ECCO racked up 26 out of a possible 30 points, better than the national average of 15.65.

ECCO had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets suggests a credit union could eventually have to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

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

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

ECCO underperformed the average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One sign that ECCO is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.