Safe and Sound

RUSHMORE ELECTRIC

RAPID CITY, SD
4
Star Rating
RAPID CITY, SD-based RUSHMORE ELECTRIC is an NCUA-insured credit union founded in 1964. Regulatory filings show the credit union having assets of $20.3 million, as of December 31, 2017.

With 4 full-time employees, the credit union has amassed loans and leases worth $9.4 million. Its 1,641 members currently have $17.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RUSHMORE ELECTRIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

RUSHMORE ELECTRIC came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

RUSHMORE ELECTRIC appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is 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 a large number of these kinds of assets means a credit union could have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, RUSHMORE ELECTRIC scored 2 out of a possible 30, falling short of the national average of 10.11.

RUSHMORE ELECTRIC had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.