Safe and Sound

ALTURA

RIVERSIDE, CA
5
Star Rating
ALTURA is a RIVERSIDE, CA-based, NCUA-insured credit union started in 1957. Regulatory filings show the credit union having $1.28 billion in assets, as of June 30, 2017.

Members have $831.6 million on deposit tended by 317 full-time employees. With that footprint, the credit union has amassed loans and leases worth $831.6 million. ALTURA's 119,592 members currently have $1.13 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALTURA exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the more capital, the better.

ALTURA scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

ALTURA's capitalization ratio of 10.00 percent in our test was 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 determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, cutting down on 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, reducing earnings and elevating the risk of a failure in the future.

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

ALTURA's ratio of troubled assets was 4.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, ALTURA scored 18 out of a possible 30, better than the national average of 10.31.

One sign that ALTURA is outperforming its peers in this area was its earnings ratio of 10.00 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.