Safe and Sound

RIMROCK

BILLINGS, MT
4
Star Rating
BILLINGS, MT-based RIMROCK is an NCUA-insured credit union started in 1949. Regulatory filings show the credit union having $38.0 million in assets, as of December 31, 2017.

With 8 full-time employees, the credit union has amassed loans and leases worth $12.7 million. RIMROCK's 3,639 members currently have $32.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIMROCK exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate 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 affords protection for members during periods of financial trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

RIMROCK beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 22 out of a possible 30 points.

RIMROCK appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

RIMROCK scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

RIMROCK underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

RIMROCK had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.