Safe and Sound

RIVERTRUST

PEARL, MS
4
Star Rating
RIVERTRUST is a PEARL, MS-based, NCUA-insured credit union founded in 1935. The credit union holds $175.6 million in assets, according to June 30, 2017, regulatory filings.

With 15 full-time employees, the credit union currently holds loans and leases worth $48.2 million. RIVERTRUST's 8,345 members currently have $151.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RIVERTRUST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

RIVERTRUST racked up 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

RIVERTRUST appears to be stronger than its peers, with a capitalization ratio of 14.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

RIVERTRUST 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 2.00 percent of RIVERTRUST's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

RIVERTRUST scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, better than the average for all credit unions, a sign that it's beating 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.