Safe and Sound

ALTRA

ONALASKA, WI
5
Star Rating
Started in 1934, ALTRA is an NCUA-insured credit union based in ONALASKA, WI. The credit union holds assets of $1.35 billion, according to June 30, 2017, regulatory filings.

Members have $1.15 billion on deposit tended by 323 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.15 billion. ALTRA's 95,628 members currently have $1.11 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALTRA 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 grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is useful. It works as a buffer against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

ALTRA scored below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 12 out of a possible 30 points.

ALTRA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

ALTRA scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.

A lower-than-average ratio of troubled assets of 6.00 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 can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ALTRA scored 18 out of a possible 30, above the national average of 10.31.

One indication that ALTRA is doing better than its peers in this area was its earnings ratio of 9.00 percent in our test, above 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.