Safe and Sound

RIVER COMMUNITY

OTTUMWA, IA
5
Star Rating
RIVER COMMUNITY is an NCUA-insured credit union started in 1928 and currently based in OTTUMWA, IA. Regulatory filings show the credit union having assets of $17.0 million, as of December 31, 2017.

Thanks to the work of 6 full-time employees, the credit union holds loans and leases worth $11.9 million. Its 3,667 members currently have $14.2 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

RIVER COMMUNITY scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 22 out of a possible 30 points.

RIVER COMMUNITY appears to be on more solid financial footing than its peers, with a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine 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.

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 0.00 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 affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, RIVER COMMUNITY scored 12 out of a possible 30, above the national average of 10.11.

One sign that RIVER COMMUNITY is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.