Safe and Sound

ALTAONE

Ridgecrest, CA
3
Star Rating
ALTAONE is an NCUA-insured credit union founded in 1947 and currently headquartered in Ridgecrest, CA. Regulatory filings show the credit union having $643.6 million in assets, as of June 30, 2017.

Thanks to the work of 150 full-time employees, the credit union currently holds loans and leases worth $538.9 million. Its 52,741 members currently have $589.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALTAONE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of economic instability for the credit union. Therefore, an institution's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

ALTAONE came in below the national average of 15.26 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

ALTAONE had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

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

Troubled assets made up 11.00 percent of the credit union's total assets in our test, higher than the national average and a potential cause for concern.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

ALTAONE underperformed the average on Bankrate's test of earnings, achieving a score of 8 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 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.