Safe and Sound

RICHFIELD-BLOOMINGTON

BLOOMINGTON, MN
4
Star Rating
Started in 1957, RICHFIELD-BLOOMINGTON is an NCUA-insured credit union based in BLOOMINGTON, MN. The credit union has assets of $283.2 million, according to December 31, 2017, regulatory filings.

With 61 full-time employees, the credit union holds loans and leases worth $147.2 million. RICHFIELD-BLOOMINGTON's 21,759 members currently have $257.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RICHFIELD-BLOOMINGTON 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 important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, RICHFIELD-BLOOMINGTON received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

RICHFIELD-BLOOMINGTON had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

RICHFIELD-BLOOMINGTON did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

RICHFIELD-BLOOMINGTON did below-average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

RICHFIELD-BLOOMINGTON had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.