Safe and Sound

POMPANO BEACH CITY EMP.

POMPANO BEACH, FL
5
Star Rating
Started in 1991, POMPANO BEACH CITY EMP. is an NCUA-insured credit union based in POMPANO BEACH, FL. The credit union has assets of $20.4 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union holds loans and leases worth $15.4 million. POMPANO BEACH CITY EMP.'s 1,887 members currently have $15.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POMPANO BEACH CITY EMP. exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate 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 experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial strength, capital is useful. From a safety and soundness perspective, the more capital, the better.

POMPANO BEACH CITY EMP. racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

POMPANO BEACH CITY EMP. appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets means a credit union could have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.

POMPANO BEACH CITY EMP. scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, POMPANO BEACH CITY EMP. scored 10 out of a possible 30, lower than the national average of 10.11.

One indication that the credit union is outperforming 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.