Safe and Sound

WE FLORIDA FINANCIAL

MARGATE, FL
3
Star Rating
WE FLORIDA FINANCIAL is a MARGATE, FL-based, NCUA-insured credit union dating back to 1953. As of December 31, 2017, the credit union had assets of $520.5 million.

With 149 full-time employees, the credit union has amassed loans and leases worth $364.2 million. WE FLORIDA FINANCIAL's 51,087 members currently have $465.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WE FLORIDA FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, WE FLORIDA FINANCIAL received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

WE FLORIDA FINANCIAL's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble 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 unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

WE FLORIDA FINANCIAL fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

WE FLORIDA FINANCIAL received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.