Safe and Sound

HAYWARD COMMUNITY

HAYWARD, WI
3
Star Rating
HAYWARD COMMUNITY is an NCUA-insured credit union founded in 1935 and currently headquartered in HAYWARD, WI. Regulatory filings show the credit union having $72.2 million in assets, as of December 31, 2017.

Thanks to the efforts of 22 full-time employees, the credit union has amassed loans and leases worth $44.1 million. Its 6,661 members currently have $65.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAYWARD COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial resilience. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

HAYWARD COMMUNITY received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

HAYWARD COMMUNITY's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is 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 loans.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, HAYWARD COMMUNITY scored 32 out of a possible 40 points, less than the national average of 38.09 points.

Troubled assets made up 0.00 percent of HAYWARD COMMUNITY's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, HAYWARD COMMUNITY scored 6 out of a possible 30, coming in below the national average of 10.11.

HAYWARD COMMUNITY had an earnings ratio of 0.00 percent in our test, better than 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.