Safe and Sound

REFUGIO COUNTY

Refugio, TX
4
Star Rating
REFUGIO COUNTY is a Refugio, TX-based, NCUA-insured credit union founded in 1958. Regulatory filings show the credit union having assets of $13.1 million, as of December 31, 2017.

Thanks to the efforts of 3 full-time employees, the credit union currently holds loans and leases worth $6.0 million. REFUGIO COUNTY's 1,238 members currently have $11.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, REFUGIO COUNTY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is crucial. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, REFUGIO COUNTY racked up 18 out of a possible 30 points, above the national average of 15.65.

REFUGIO COUNTY appears to be stronger than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due 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 types of assets may eventually have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a future failure.

REFUGIO COUNTY scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

REFUGIO COUNTY's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative 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, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

REFUGIO COUNTY scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.