Safe and Sound

RIVERTOWN COMMUNITY

GRANDVILLE, MI
3
Star Rating
RIVERTOWN COMMUNITY is an NCUA-insured credit union started in 1949 and currently based in GRANDVILLE, MI. As of December 31, 2017, the credit union had assets of $62.3 million.

Members have $36.2 million on deposit tended by 16 full-time employees. With that footprint, the credit union has amassed loans and leases worth $36.2 million. RIVERTOWN COMMUNITY's 7,324 members currently have $53.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERTOWN COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during periods of financial instability for the credit union. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

RIVERTOWN COMMUNITY achieved a score of 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

RIVERTOWN COMMUNITY appears to be stronger than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets could eventually force a credit union to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, RIVERTOWN COMMUNITY scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

RIVERTOWN COMMUNITY fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that RIVERTOWN COMMUNITY is running ahead of 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.