Safe and Sound

RIO GRANDE VALLEY CREDIT UNION

Harlingen, TX
4
Star Rating
Started in 1954, RIO GRANDE VALLEY CREDIT UNION is an NCUA-insured credit union headquartered in Harlingen, TX. As of December 31, 2017, the credit union had assets of $95.5 million.

Members have $47.6 million on deposit tended by 32 full-time employees. With that footprint, the credit union has amassed loans and leases worth $47.6 million. Its 15,947 members currently have $85.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIO GRANDE VALLEY CREDIT UNION 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. From a safety and soundness perspective, the higher the capital, the better.

RIO GRANDE VALLEY CREDIT UNION received a score of 10 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

RIO GRANDE VALLEY CREDIT UNION had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets may eventually have to use capital to absorb losses, decreasing 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, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, RIO GRANDE VALLEY CREDIT UNION scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

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

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

RIO GRANDE VALLEY CREDIT UNION scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that RIO GRANDE VALLEY CREDIT UNION is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.