Safe and Sound

SOUTH FLORIDA

MIAMI, FL
1
Star Rating
SOUTH FLORIDA is a MIAMI, FL-based, NCUA-insured credit union dating back to 1978. Regulatory filings show the credit union having assets of $33.6 million, as of December 31, 2017.

With 12 full-time employees, the credit union has amassed loans and leases worth $23.7 million. Its 4,019 members currently have $27.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH FLORIDA exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It acts as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, SOUTH FLORIDA received a score of 8 out of a possible 30 points, less than the national average of 15.65.

SOUTH FLORIDA had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

SOUTH FLORIDA scored 36 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

Troubled assets made up 0.00 percent of SOUTH FLORIDA's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, SOUTH FLORIDA scored 0 out of a possible 30, coming in below the national average of 10.11.

One indication that SOUTH FLORIDA is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.