Safe and Sound

ALTA VISTA

REDLANDS, CA
3
Star Rating
REDLANDS, CA-based ALTA VISTA is an NCUA-insured credit union started in 1943. The credit union has $164.3 million in assets, according to June 30, 2017, regulatory filings.

With 41 full-time employees, the credit union has amassed loans and leases worth $120.4 million. Its 14,284 members currently have $150.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALTA VISTA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired 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 an institution's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

ALTA VISTA finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, racking up 6 out of a possible 30 points.

ALTA VISTA had a capitalization ratio of 7.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its cushion of equity. 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 failure in the future.

ALTA VISTA fell below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

An above-average ratio of troubled assets of 8.00 percent in our test was a potential cause for concern for ALTA VISTA.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

ALTA VISTA scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 3.00 percent in our test, higher 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.