Safe and Sound

GUARDIANS

WEST PALM BEACH, FL
5
Star Rating
GUARDIANS is an NCUA-insured credit union started in 1991 and currently headquartered in WEST PALM BEACH, FL. As of December 31, 2017, the credit union held assets of $154.7 million.

Members have $87.1 million on deposit tended by 64 full-time employees. With that footprint, the credit union has amassed loans and leases worth $87.1 million. GUARDIANS's 29,134 members currently have $131.9 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic instability for the credit union. Therefore, a credit union's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

GUARDIANS did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 16 out of a possible 30 points.

GUARDIANS's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its buffer of equity. 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, diminishing earnings and elevating the chances of a failure in the future.

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

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

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, GUARDIANS scored 18 out of a possible 30, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better 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.