Safe and Sound

FORT COMMUNITY

FORT ATKINSON, WI
5
Star Rating
FORT COMMUNITY is an NCUA-insured credit union founded in 1940 and currently based in FORT ATKINSON, WI. The credit union holds assets of $238.0 million, according to December 31, 2017, regulatory filings.

Members have $154.3 million on deposit tended by 60 full-time employees. With that footprint, the credit union currently holds loans and leases worth $154.3 million. Its 19,913 members currently have $199.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORT COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, FORT COMMUNITY achieved a score of 20 out of a possible 30 points, beating out the national average of 15.65.

FORT COMMUNITY appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

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

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

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, FORT COMMUNITY scored 16 out of a possible 30, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above 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.