Safe and Sound

RIVERVIEW

SOUTH SAINT PAU, MN
5
Star Rating
Started in 1931, RIVERVIEW is an NCUA-insured credit union based in SOUTH SAINT PAU, MN. The credit union holds assets of $5.5 million, according to December 31, 2017, regulatory filings.

With 2 full-time employees, the credit union has amassed loans and leases worth $4.0 million. Its 643 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RIVERVIEW exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

RIVERVIEW beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 26 out of a possible 30 points.

RIVERVIEW had a capitalization ratio of 26.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, shrinking its equity cushion. 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 depressed earnings and potentially more risk of a failure in the future.

RIVERVIEW scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, RIVERVIEW scored 4 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.