Safe and Sound

RIVERSIDE HEALTH SYSTEM EMPLOYEES'

Newport News, VA
4
Star Rating
Newport News, VA-based RIVERSIDE HEALTH SYSTEM EMPLOYEES' is an NCUA-insured credit union started in 1970. As of December 31, 2017, the credit union had assets of $8.6 million.

Members have $4.1 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.1 million. RIVERSIDE HEALTH SYSTEM EMPLOYEES''s 3,083 members currently have $7.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERSIDE HEALTH SYSTEM EMPLOYEES' exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an important measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, RIVERSIDE HEALTH SYSTEM EMPLOYEES' scored 24 out of a possible 30 points, exceeding the national average of 15.65.

RIVERSIDE HEALTH SYSTEM EMPLOYEES''s capitalization ratio of 24.00 percent in our test was above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these types of assets means a credit union could have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

RIVERSIDE HEALTH SYSTEM EMPLOYEES' scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

RIVERSIDE HEALTH SYSTEM EMPLOYEES' scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

RIVERSIDE HEALTH SYSTEM EMPLOYEES' had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.