Safe and Sound

BLACKHAWK COMMUNITY

JANESVILLE, WI
4
Star Rating
BLACKHAWK COMMUNITY is an NCUA-insured credit union started in 1965 and currently based in JANESVILLE, WI. The credit union has assets of $506.9 million, according to December 31, 2017, regulatory filings.

With 147 full-time employees, the credit union holds loans and leases worth $340.6 million. BLACKHAWK COMMUNITY's 48,337 members currently have $460.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLACKHAWK COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important 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 buffer against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial stability, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

BLACKHAWK COMMUNITY came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 6 out of a possible 30 points.

BLACKHAWK COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, BLACKHAWK COMMUNITY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

BLACKHAWK COMMUNITY scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.