Safe and Sound

ALTRA

ONALASKA, WI
5
Star Rating
ALTRA is an NCUA-insured credit union founded in 1934 and currently headquartered in ONALASKA, WI. The credit union has assets of $1.39 billion, according to December 31, 2017, regulatory filings.

With 333 full-time employees, the credit union has amassed loans and leases worth $1.22 billion. Its 97,902 members currently have $1.13 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALTRA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is crucial. It works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, more capital is preferred.

ALTRA fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

ALTRA appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be required to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, ALTRA scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of ALTRA's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, ALTRA scored 18 out of a possible 30, better than the national average of 10.11.

ALTRA had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's doing better than its peers in this area.

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.