Safe and Sound

R.I.A.

Rock Island, IL
3
Star Rating
Rock Island, IL-based R.I.A. is an NCUA-insured credit union started in 1935. The credit union has $396.2 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 103 full-time employees, the credit union currently holds loans and leases worth $319.5 million. Its 42,362 members currently have $342.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, R.I.A. exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is key. When it comes to safety and soundness, more capital is preferred.

R.I.A. received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

R.I.A. had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, R.I.A. scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of R.I.A.'s total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, R.I.A. scored 6 out of a possible 30, failing to reach the national average of 10.11.

One sign that R.I.A. is running ahead of its peers in this area was its earnings ratio of 0.00 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.