Safe and Sound

SOUTH FLORIDA EDUCATIONAL

MIAMI, FL
5
Star Rating
SOUTH FLORIDA EDUCATIONAL is a MIAMI, FL-based, NCUA-insured credit union founded in 1935. The credit union has $1.08 billion in assets, according to December 31, 2017, regulatory filings.

Members have $239.6 million on deposit tended by 229 full-time employees. With that footprint, the credit union has amassed loans and leases worth $239.6 million. Its 80,226 members currently have $867.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH FLORIDA EDUCATIONAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

SOUTH FLORIDA EDUCATIONAL achieved a score of 28 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

SOUTH FLORIDA EDUCATIONAL appears to be on more solid financial footing than its peers, with a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to absorb losses, shrinking 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 money, resulting in diminished earnings and potentially more risk of a future failure.

SOUTH FLORIDA EDUCATIONAL did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union'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

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

SOUTH FLORIDA EDUCATIONAL did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.