BauerFinancial, Inc. has been analyzing and reporting on the financial condition of the nation’s banking industry since 1983. Through the years BauerFinancial has earned the reputation of “the nation’s bank rating service”.
Each bank and credit union is required to file a detailed financial report with federal regulators four times a year. BauerFinancial obtains this data in its raw form from the government. The quarterly data is subjected to a thorough analysis and is compared with historical data for consistency. Upon completion of the analysis, a star-rating is assigned based on a scale of zero to five stars with five stars being the strongest.
BauerFinancial is the source for unbiased, independent bank and credit union star-ratings. No institution pays for its rating, nor can they avoid a rating. But that’s not all we do.
BauerFinancial Ratings Explained:
Superior (These institutions are on BauerFinancial's Recommended Report.)
Excellent (These institutions are also on BauerFinancial's Recommended Report.)
Zero-Stars is our lowest star rating. These institutions are included on our Troubled & Problematic Report and are facing considerable challenges at this time. Please check back as star ratings are subject to change at any time.
Start-up. Institutions that are too new to rate. As a general rule, an institution will receive its first Bauer star-rating after it has been in business for approximately 2.5 years.
Credit Unions that are not rated because either: they have less than $1.5 million in assets OR are not NCUA insured.
Bank has failed and/or is operating under FDIC conservatorship. No longer rated by BauerFinancial.
Credit Unions that have been resolved or liquidated since the reporting date. No longer rated by BauerFinancial.
In addition to the capital ratio, other criteria are used to determine the BauerFinancial™ Star-Rating. Some of these include but are not limited to: profitability/loss trend, evaluating the level of delinquent loans, chargeoffs and repossessed assets, the market versus book value of the investment portfolio, regulatory supervisory agreements, the community reinvestment rating (CRA), historical data and liquidity.