Safe and Sound

FINANCIAL EDUCATORS

DAYTONA BEACH, FL
4
Star Rating
DAYTONA BEACH, FL-based FINANCIAL EDUCATORS is an NCUA-insured credit union started in 1969. Regulatory filings show the credit union having $17.5 million in assets, as of December 31, 2017.

Members have $9.9 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $9.9 million. Its 2,114 members currently have $15.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FINANCIAL EDUCATORS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score American 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 instability. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, more capital is preferred.

FINANCIAL EDUCATORS beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 18 out of a possible 30 points.

FINANCIAL EDUCATORS had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, cutting down on its equity cushion. 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, resulting in depressed earnings and potentially more risk of a future failure.

FINANCIAL EDUCATORS fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, FINANCIAL EDUCATORS scored 22 out of a possible 30, above the national average of 10.11.

FINANCIAL EDUCATORS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.