Safe and Sound

RIVER CITIES COMMUNITY

Atchison, KS
3
Star Rating
RIVER CITIES COMMUNITY is an Atchison, KS-based, NCUA-insured credit union dating back to 1958. The credit union has assets of $3.8 million, according to December 31, 2017, regulatory filings.

Members have $3.5 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.5 million. Its 967 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVER CITIES COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is essential. It acts as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, RIVER CITIES COMMUNITY received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

RIVER CITIES COMMUNITY's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to cover losses, shrinking its cushion 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, resulting in reduced earnings and potentially more risk of a future failure.

RIVER CITIES COMMUNITY scored 24 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

RIVER CITIES COMMUNITY scored 22 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

One sign that RIVER CITIES COMMUNITY is outperforming its peers in this area was its earnings ratio of 0.00 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.