Safe and Sound

RESOURCE ONE

Dallas, TX
4
Star Rating
Dallas, TX-based RESOURCE ONE is an NCUA-insured credit union started in 1936. The credit union has assets of $476.3 million, according to December 31, 2017, regulatory filings.

With 151 full-time employees, the credit union has amassed loans and leases worth $401.3 million. Its 60,113 members currently have $422.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RESOURCE ONE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American 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 fortitude, capital is useful. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, RESOURCE ONE received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

RESOURCE ONE's capitalization ratio of 12.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, reducing 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 interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

RESOURCE ONE fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

RESOURCE ONE'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 affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, RESOURCE ONE scored 14 out of a possible 30, above the national average of 10.11.

One indication that the credit union is outperforming 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.