Safe and Sound

RANDOLPH-BROOKS

Universal City, TX
5
Star Rating
Founded in 1952, RANDOLPH-BROOKS is an NCUA-insured credit union based in Universal City, TX. The credit union holds $8.25 billion in assets, according to June 30, 2017, regulatory filings.

Members have $6.13 billion on deposit tended by 1,820 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.13 billion. RANDOLPH-BROOKS's 690,041 members currently have $6.67 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RANDOLPH-BROOKS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is useful. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, RANDOLPH-BROOKS received a score of 14 out of a possible 30 points, lower than the national average of 15.26.

RANDOLPH-BROOKS had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due 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 types of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, RANDOLPH-BROOKS scored 40 out of a possible 40 points, better than the national average of 38.15 points.

RANDOLPH-BROOKS's ratio of troubled assets was 2.00 percent 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 making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

RANDOLPH-BROOKS exceeded the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 9.00 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.