Safe and Sound

RIVERSIDE

BUFFALO, NY
3
Star Rating
RIVERSIDE is an NCUA-insured credit union started in 1942 and currently based in BUFFALO, NY. The credit union has assets of $54.1 million, according to December 31, 2017, regulatory filings.

Members have $35.1 million on deposit tended by 12 full-time employees. With that footprint, the credit union currently holds loans and leases worth $35.1 million. RIVERSIDE's 5,957 members currently have $48.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERSIDE 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 evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is key. It works as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, RIVERSIDE received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

RIVERSIDE's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, an indication 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 loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, RIVERSIDE scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

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 earnings performance affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

RIVERSIDE fell behind the national average on Bankrate's test of earnings, achieving a score of 8 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, an indication 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.