Safe and Sound

THRIVENT

APPLETON, WI
4
Star Rating
Started in 2012, THRIVENT is an NCUA-insured credit union headquartered in APPLETON, WI. Regulatory filings show the credit union having assets of $523.4 million, as of June 30, 2017.

Members have $366.0 million on deposit tended by 134 full-time employees. With that footprint, the credit union currently holds loans and leases worth $366.0 million. THRIVENT's 50,182 members currently have $449.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, THRIVENT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at 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 cushion against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

THRIVENT received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

THRIVENT's capitalization ratio of 10.00 percent in our test was below 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 impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, reducing its buffer 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, diminishing earnings and elevating the chances of a failure in the future.

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

A below-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

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

THRIVENT fell short of the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that THRIVENT is outperforming its peers in this area was its earnings ratio of 4.00 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.