Safe and Sound

FLORIDA CUSTOMS

TAMPA, FL
5
Star Rating
TAMPA, FL-based FLORIDA CUSTOMS is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having assets of $9.6 million, as of December 31, 2017.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $3.4 million. Its 1,130 members currently have $7.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FLORIDA CUSTOMS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

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 struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, FLORIDA CUSTOMS achieved a score of 26 out of a possible 30 points, above the national average of 15.65.

FLORIDA CUSTOMS appears to be on more solid financial footing than its peers, with a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing 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, reducing earnings and elevating the chances of a failure in the future.

FLORIDA CUSTOMS exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of FLORIDA CUSTOMS's total assets in our test, less than the national average and 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. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, FLORIDA CUSTOMS scored 6 out of a possible 30, failing to reach the national average of 10.11.

One sign that FLORIDA CUSTOMS is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.