Safe and Sound

M. A. FORD EMPLOYEES

Davenport, IA
2
Star Rating
M. A. FORD EMPLOYEES is a Davenport, IA-based, NCUA-insured credit union founded in 1952. The credit union holds assets of $1.6 million, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $501,345. M. A. FORD EMPLOYEES's 331 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, M. A. FORD EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is better.

M. A. FORD EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

M. A. FORD EMPLOYEES had a capitalization ratio of 14.00 percent in our test, below 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 determine the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, cutting down on its buffer of equity. 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, decreasing earnings and increasing the chances of a future failure.

M. A. FORD EMPLOYEES scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A below-average ratio of problem 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 earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

M. A. FORD EMPLOYEES received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One indication that M. A. FORD EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.