Safe and Sound

ELM RIVER

Kindred, ND
5
Star Rating
Started in 1954, ELM RIVER is an NCUA-insured credit union headquartered in Kindred, ND. Regulatory filings show the credit union having assets of $22.3 million, as of June 30, 2017.

With 6 full-time employees, the credit union currently holds loans and leases worth $18.7 million. ELM RIVER's 1,471 members currently have $18.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ELM RIVER exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, ELM RIVER racked up 24 out of a possible 30 points, beating out the national average of 15.26.

ELM RIVER had a capitalization ratio of 16.00 percent in our test, better than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer 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 depressed earnings and potentially more risk of a failure in the future.

ELM RIVER scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

Troubled assets made up 1.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, ELM RIVER scored 16 out of a possible 30, above the national average of 10.31.

One indication that ELM RIVER is beating its peers in this area was its earnings ratio of 8.00 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.