bauerBauerFinancial Inc.© sets the standard for credit union and bank performance analysis through detailed evaluation of financial data. Since 1983, the five-star rating scale determined this independent research firm’s findings. Some of the criteria Bauer uses to determine a financial institution’s rating includes the “total risk-based capital ratio…” (net capital/assets), “profitability/loss trend…, the market versus book value of the investment portfolio, regulatory supervisory agreements, the community reinvestment rating (CRA), historical data and liquidity (BauerFinancial Inc., 2010).”

BauerFinancial Inc. (2010). An Explanation of Bank and Credit Union Star Ratings. Retrieved on January 6, 2015 from BauerFinancial: