Safe and Sound

PRIORITY

ORLANDO, FL
1
Star Rating
ORLANDO, FL-based PRIORITY is an NCUA-insured credit union founded in 1930. The credit union has $65.8 million in assets, according to December 31, 2017, regulatory filings.

With 29 full-time employees, the credit union currently holds loans and leases worth $47.2 million. PRIORITY's 14,319 members currently have $60.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PRIORITY exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

PRIORITY fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 4 out of a possible 30 points.

PRIORITY had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, decreasing its equity buffer. 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, decreasing earnings and increasing the chances of a future failure.

PRIORITY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

PRIORITY's ratio of problem 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 earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

PRIORITY scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

PRIORITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.