Safe and Sound

RICHMOND CITY EMPLOYEES

Richmond, IN
3
Star Rating
Richmond, IN-based RICHMOND CITY EMPLOYEES is an NCUA-insured credit union founded in 1961. The credit union has assets of $5.6 million, according to December 31, 2017, regulatory filings.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.7 million. RICHMOND CITY EMPLOYEES's 1,112 members currently have $5.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RICHMOND CITY EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It works as a cushion against losses and provides protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

RICHMOND CITY EMPLOYEES received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

RICHMOND CITY EMPLOYEES's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

RICHMOND CITY EMPLOYEES 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.