Safe and Sound

AURORA POSTAL EMPLOYEES

Aurora, IL
4
Star Rating
Aurora, IL-based AURORA POSTAL EMPLOYEES is an NCUA-insured credit union founded in 1932. As of December 31, 2017, the credit union had assets of $2.1 million.

The credit union holds loans and leases worth $1.1 million. AURORA POSTAL EMPLOYEES's 499 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AURORA POSTAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

AURORA POSTAL EMPLOYEES exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 28 out of a possible 30 points.

AURORA POSTAL EMPLOYEES had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking 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 money, resulting in depressed earnings and potentially more risk of a future failure.

AURORA POSTAL EMPLOYEES fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

AURORA POSTAL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 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.