Safe and Sound

R T P

RTP, NC
2
Star Rating
RTP, NC-based R T P is an NCUA-insured credit union started in 1968. Regulatory filings show the credit union having assets of $114.4 million, as of December 31, 2017.

Members have $78.1 million on deposit tended by 34 full-time employees. With that footprint, the credit union has amassed loans and leases worth $78.1 million. Its 10,242 members currently have $103.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, R T P exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

R T P received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

R T P's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

R T P scored 32 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

Troubled assets made up 0.00 percent of R T P's total assets in our test, less than 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. 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 able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

R T P fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than its peers in this area.

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.