Safe and Sound

EMERALD COAST

PORT ST JOE, FL
3
Star Rating
EMERALD COAST is a PORT ST JOE, FL-based, NCUA-insured credit union started in 1939. The credit union has $45.6 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 20 full-time employees, the credit union holds loans and leases worth $25.8 million. EMERALD COAST's 5,157 members currently have $42.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EMERALD COAST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

EMERALD COAST received a score of 4 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

EMERALD COAST's capitalization ratio of 4.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, EMERALD COAST scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, EMERALD COAST scored 12 out of a possible 30, exceeding the national average of 10.11.

One indication that EMERALD COAST is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.