Safe and Sound

FORWARD FINANCIAL

NIAGARA, WI
3
Star Rating
NIAGARA, WI-based FORWARD FINANCIAL is an NCUA-insured credit union founded in 1948. Regulatory filings show the credit union having assets of $71.4 million, as of December 31, 2017.

Members have $50.1 million on deposit tended by 25 full-time employees. With that footprint, the credit union has amassed loans and leases worth $50.1 million. Its 8,299 members currently have $62.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORWARD FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, FORWARD FINANCIAL received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

FORWARD FINANCIAL had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a future failure.

FORWARD FINANCIAL came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

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

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

FORWARD FINANCIAL fell behind the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

FORWARD FINANCIAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.