Safe and Sound

FLORIDA CENTRAL

TAMPA, FL
3
Star Rating
FLORIDA CENTRAL is a TAMPA, FL-based, NCUA-insured credit union that opened its doors in 1954. Regulatory filings show the credit union having $451.2 million in assets, as of December 31, 2017.

Thanks to the efforts of 119 full-time employees, the credit union has amassed loans and leases worth $342.6 million. Its 54,118 members currently have $410.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FLORIDA CENTRAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

FLORIDA CENTRAL received a score of 6 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

FLORIDA CENTRAL's capitalization ratio of 6.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these types of assets could eventually be forced to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

FLORIDA CENTRAL scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

FLORIDA CENTRAL scored 8 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that FLORIDA CENTRAL 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.