Overview of Riverfall Credit Union
Riverfall Credit Union officially got its credit union charter in the year 1953. The credit union falls under the category: state charter. In terms of its lending activity, the credit union is mainly engaged in providing auto loans. These loans represent 57% of its total lending. Riverfall Credit Union’s total assets are larger than 72% of credit unions in the United States. Unlike banks, credit unions like Riverfall Credit Union are not insured by the Federal Deposit Insurance Corporation (FDIC) but instead receive deposit insurance from the National Credit Union Administration (NCUA), which operates in a similar fashion to the FDIC. The company has a total of 4 branches and employs a total of 32 employees.
Details on the Credit Union’s Balance Sheet
Some of the key components of the credit union’s balance sheet are total assets of $164 million, total loans extended to customers of $144 million and customer deposits of $92 million. Furthermore, the credit union has a loan to deposit ratio of 64% which is higher than credit unions of comparable size. Riverfall Credit Union’s peer set of credit unions have a loan to deposit ratio of approximately 63%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Taking a closer look at the credit union’s loan portfolio, we see that auto loans represent 57% of the total and currently stands at $52 million, while there is $24 million of loans outstanding from mortgages and lines of credit which represents 26% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: P.O. Box 1756, Tuscaloosa, AL 35403
- Website: http://riverfallcu.com
- Phone: (205) 759-1505
- Charter Number: 60942
- Charter Year: 1953
- Employees: 32
- Routing Number: 262277286
- Membership: On average, credit unions in Alabama each have 23,867 members while across the United States the equivalent figure is 25,779. By comparison, Riverfall Credit Union has total members of 12,372 which is significantly smaller than the average credit union in the state. Over the past three years, the credit union’s total base of members has increased by 29%.
Riverfall Credit Union: Financial Overview
Detailed above is a chart showing the progression of four important balance sheet items over the past year for Riverfall Credit Union. Assets and total loans for the credit union have expanded by 12.1% and increased by 14.5%, respectively. In addition, the company’s auto loans, which as noted earlier is the largest portion of the loan book, has expanded by 18.7%. Lastly, the credit union’s deposits have grown by 18.2%. A credit union’s net worth is a good proxy for the value that a credit union has accrued over time. Based on the latest available information, Riverfall Credit Union’s net worth stands at $21 million. This implies that the credit union has a net worth per member of $1,661 which is greater than the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The above chart shows some of the important metrics we look at when assessing a credit union, and compares these to the average credit union of comparable size. It also shows how these metrics have fared over the past year. Starting with the company’s return on assets, on this metric Riverfall Credit Union is below the average credit union in its peer set and over the past year ROA has improved with a total change of 0.14%. Return on assets tells us how productive a company is being with its asset base. Moving on to the credit union’s delinquency rate, which tells us how much of a credit union’s loan book is delinquent, the credit union is well above its peer group on this metric and compared with the prior year it has improved substantially. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. Finally, the net worth ratio for the credit union is 12.5% which is well above its peer group average of 9.7%. This metric has declined on a year over year basis and stood at 13.4% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Our final rating for Riverfall Credit Union, after assessing the credit union on what we consider to be the important metrics, is 3.0 out of 5.0, which is above average. Finally, please note that the rating information presented is based on our proprietary scoring system. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.