Safe and Sound

PRIORITY ONE CREDIT UNION

SUNRISE, FL
4
Star Rating
PRIORITY ONE CREDIT UNION is a SUNRISE, FL-based, NCUA-insured credit union that opened its doors in 1991. Regulatory filings show the credit union having $93.1 million in assets, as of December 31, 2017.

Members have $61.9 million on deposit tended by 31 full-time employees. With that footprint, the credit union has amassed loans and leases worth $61.9 million. PRIORITY ONE CREDIT UNION's 9,744 members currently have $83.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PRIORITY ONE CREDIT UNION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It acts as a buffer against losses and provides protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

PRIORITY ONE CREDIT UNION received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

PRIORITY ONE CREDIT UNION appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

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

PRIORITY ONE CREDIT UNION scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Troubled assets made up 0.00 percent of PRIORITY ONE CREDIT UNION's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

PRIORITY ONE CREDIT UNION did below-average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

PRIORITY ONE CREDIT UNION had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.