Safe and Sound

RIVER BEND

SOUTH BEND, IN
5
Star Rating
SOUTH BEND, IN-based RIVER BEND is an NCUA-insured credit union founded in 1949. Regulatory filings show the credit union having $5.5 million in assets, as of December 31, 2017.

Members have $2.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.9 million. Its 888 members currently have $4.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVER BEND exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

RIVER BEND exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 24 out of a possible 30 points.

RIVER BEND's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets suggests a credit union may have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a failure in the future.

RIVER BEND scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

RIVER BEND's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

RIVER BEND beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.