Safe and Sound

RIVERLAND

NEW ORLEANS, LA
4
Star Rating
Founded in 1978, RIVERLAND is an NCUA-insured credit union based in NEW ORLEANS, LA. Regulatory filings show the credit union having assets of $232.2 million, as of June 30, 2017.

Members have $191.6 million on deposit tended by 51 full-time employees. With that footprint, the credit union currently holds loans and leases worth $191.6 million. Its 14,505 members currently have $174.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RIVERLAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's 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 acts as a bulwark 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 crucial measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

RIVERLAND received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

RIVERLAND had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect 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 large numbers of these types of assets could eventually force a credit union to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, RIVERLAND scored 40 out of a possible 40 points, beating the national average of 38.15 points.

A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

RIVERLAND scored 14 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

One sign that RIVERLAND is running ahead of its peers in this area was its earnings ratio of 6.00 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.