Safe and Sound

BADGER

PESHTIGO, WI
4
Star Rating
Started in 1933, BADGER is an NCUA-insured credit union headquartered in PESHTIGO, WI. As of June 30, 2017, the credit union held assets of $14.9 million.

With 5 full-time employees, the credit union holds loans and leases worth $11.1 million. BADGER's 1,930 members currently have $12.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BADGER 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 important criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is important. It acts as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, BADGER scored 16 out of a possible 30 points, above the national average of 15.26.

BADGER's capitalization ratio of 13.00 percent in our test puts it right in line with 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 troubled assets, such as unpaid mortgages.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

BADGER scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. 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.

On Bankrate's earnings test, BADGER scored 0 out of a possible 30, failing to reach the national average of 10.31.

BADGER had an earnings ratio of -41.00 percent in our test, below the average for all credit unions, an indication that it's running behind 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.