THE INSTITUTION'S SCORE
Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial strength, capital is important. When looking at safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, FEDFINANCIAL received a score of 6 out of a possible 30 points, lower than the national average of 15.65.
FEDFINANCIAL's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.