Safe and Sound

POTLATCH NO 1

LEWISTON, ID
4
Star Rating
LEWISTON, ID-based POTLATCH NO 1 is an NCUA-insured credit union started in 1938. As of December 31, 2017, the credit union had assets of $983.9 million.

Members have $879.7 million on deposit tended by 229 full-time employees. With that footprint, the credit union has amassed loans and leases worth $879.7 million. POTLATCH NO 1's 84,401 members currently have $881.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POTLATCH NO 1 exhibited a good condition, earning 4 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 American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, POTLATCH NO 1 received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

POTLATCH NO 1's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, cutting down on its buffer of equity. 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, diminishing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, POTLATCH NO 1 scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 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 making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

POTLATCH NO 1 scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

POTLATCH NO 1 had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.