Safe and Sound

RIVER WORKS

LYNN, MA
4
Star Rating
Founded in 1936, RIVER WORKS is an NCUA-insured credit union headquartered in LYNN, MA. Regulatory filings show the credit union having $106.6 million in assets, as of June 30, 2017.

Members have $62.6 million on deposit tended by 21 full-time employees. With that footprint, the credit union holds loans and leases worth $62.6 million. RIVER WORKS's 6,407 members currently have $82.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RIVER WORKS exhibited a good condition, earning 4 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

RIVER WORKS scored 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

RIVER WORKS's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are 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.

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

RIVER WORKS's ratio of troubled assets was 5.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, RIVER WORKS scored 6 out of a possible 30, below the national average of 10.31.

One sign that the credit union is beating its peers in this area was its earnings ratio of 3.00 percent in our test, above 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.