Safe and Sound

RIVERVIEW COMMUNITY

SAINT CLAIR, MI
3
Star Rating
RIVERVIEW COMMUNITY is an NCUA-insured credit union started in 1952 and currently headquartered in SAINT CLAIR, MI. The credit union has $28.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $13.3 million on deposit tended by 10 full-time employees. With that footprint, the credit union holds loans and leases worth $13.3 million. Its 3,682 members currently have $26.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERVIEW COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, RIVERVIEW COMMUNITY received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

RIVERVIEW COMMUNITY had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

RIVERVIEW COMMUNITY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

RIVERVIEW COMMUNITY's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

RIVERVIEW COMMUNITY received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that the credit union is doing better than 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.