Safe and Sound

RIVERSIDE COMMUNITY

MARION, IN
5
Star Rating
RIVERSIDE COMMUNITY is a MARION, IN-based, NCUA-insured credit union founded in 1940. The credit union has $36.4 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 13 full-time employees, the credit union currently holds loans and leases worth $27.7 million. RIVERSIDE COMMUNITY's 4,913 members currently have $31.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERSIDE COMMUNITY 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 important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

RIVERSIDE COMMUNITY scored below the national average of 15.65 on our test to measure capital adequacy, racking up 14 out of a possible 30 points.

RIVERSIDE COMMUNITY's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. 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, resulting in reduced earnings and potentially more risk of a future failure.

RIVERSIDE COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than 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

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

RIVERSIDE COMMUNITY outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

RIVERSIDE COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.