Safe and Sound

RIO BLANCO SCHOOLS

RANGELY, CO
5
Star Rating
RIO BLANCO SCHOOLS is a RANGELY, CO-based, NCUA-insured credit union founded in 1959. The credit union has $6.2 million in assets, according to June 30, 2017, regulatory filings.

The credit union holds loans and leases worth $3.3 million. Its 711 members currently have $5.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RIO BLANCO SCHOOLS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is important. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

RIO BLANCO SCHOOLS did better than the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 30 out of a possible 30 points.

RIO BLANCO SCHOOLS's capitalization ratio of 19.00 percent in our test was higher than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

RIO BLANCO SCHOOLS scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.15.

A below-average ratio of troubled assets of 4.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, RIO BLANCO SCHOOLS scored 8 out of a possible 30, lower than the national average of 10.31.

One sign that RIO BLANCO SCHOOLS is beating its peers in this area was its earnings ratio of 3.00 percent in our test, better 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.