Safe and Sound

FORT FINANCIAL

FORT WAYNE, IN
4
Star Rating
FORT FINANCIAL is an NCUA-insured credit union started in 1946 and currently headquartered in FORT WAYNE, IN. As of December 31, 2017, the credit union had assets of $223.3 million.

With 78 full-time employees, the credit union holds loans and leases worth $169.8 million. Its 27,902 members currently have $203.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORT FINANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, FORT FINANCIAL received a score of 8 out of a possible 30 points, below the national average of 15.65.

FORT FINANCIAL's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets could eventually be forced to use capital to cover losses, reducing its equity buffer. 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, pushing down earnings and elevating the risk of a future failure.

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

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, FORT FINANCIAL scored 12 out of a possible 30, better than the national average of 10.11.

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