Safe and Sound

MIAMI POSTAL SERVICE

MIAMI, FL
4
Star Rating
MIAMI POSTAL SERVICE is a MIAMI, FL-based, NCUA-insured credit union dating back to 1991. The credit union has assets of $128.6 million, according to June 30, 2017, regulatory filings.

Members have $53.3 million on deposit tended by 45 full-time employees. With that footprint, the credit union holds loans and leases worth $53.3 million. MIAMI POSTAL SERVICE's 15,427 members currently have $112.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MIAMI POSTAL SERVICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

MIAMI POSTAL SERVICE scored below the national average of 15.26 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

MIAMI POSTAL SERVICE's capitalization ratio of 11.00 percent in our test was worse than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

MIAMI POSTAL SERVICE scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 7.00 percent in our test, the same as the national average.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

MIAMI POSTAL SERVICE underperformed the average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 4.00 percent in our test, better 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.