Safe and Sound

R T A BROOKLYN

CLEVELAND, OH
1
Star Rating
R T A BROOKLYN is an NCUA-insured credit union started in 1939 and currently headquartered in CLEVELAND, OH. Regulatory filings show the credit union having assets of $7.2 million, as of December 31, 2017.

Its 2,277 members currently have $6.6 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $3.0 million.

Overall, Bankrate believes that, as of December 31, 2017, R T A BROOKLYN exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is useful. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, R T A BROOKLYN received a score of 4 out of a possible 30 points, lower than the national average of 15.65.

R T A BROOKLYN had a capitalization ratio of 4.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, diminishing its buffer of equity. 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, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, R T A BROOKLYN scored 28 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

R T A BROOKLYN underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.