Safe and Sound

R.I.A.

Rock Island, IL
4
Star Rating
Founded in 1935, R.I.A. is an NCUA-insured credit union based in Rock Island, IL. The credit union holds assets of $408.5 million, according to June 30, 2017, regulatory filings.

Members have $324.4 million on deposit tended by 105 full-time employees. With that footprint, the credit union has amassed loans and leases worth $324.4 million. R.I.A.'s 42,202 members currently have $343.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, R.I.A. exhibited a good condition, earning 4 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

When it comes to measuring a credit union's financial stability, capital is essential. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is better.

R.I.A. fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

R.I.A. appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity buffer. 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, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, R.I.A. scored 36 out of a possible 40 points, less than the national average of 38.15 points.

A greater-than-average ratio of problem assets of 9.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, R.I.A. scored 10 out of a possible 30, less than the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.