Safe and Sound

POTLATCH NO 1

LEWISTON, ID
4
Star Rating
Started in 1938, POTLATCH NO 1 is an NCUA-insured credit union headquartered in LEWISTON, ID. As of June 30, 2017, the credit union had assets of $944.7 million.

With 220 full-time employees, the credit union currently holds loans and leases worth $815.1 million. POTLATCH NO 1's 82,534 members currently have $840.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, POTLATCH NO 1 exhibited a good condition, earning 4 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 evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When looking at safety and soundness, more capital is preferred.

POTLATCH NO 1 received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.26.

POTLATCH NO 1's capitalization ratio of 9.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these kinds of assets could eventually have 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 no longer earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, POTLATCH NO 1 scored 40 out of a possible 40 points, above the national average of 38.15 points.

Troubled assets made up 6.00 percent of POTLATCH NO 1's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, POTLATCH NO 1 scored 18 out of a possible 30, above the national average of 10.31.

One sign that POTLATCH NO 1 is running ahead of its peers in this area was its earnings ratio of 9.00 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.