Safe and Sound

CHAMPAIGN POSTAL

Champaign, IL
3
Star Rating
Champaign, IL-based CHAMPAIGN POSTAL is an NCUA-insured credit union started in 0. Regulatory filings show the credit union having $2.6 million in assets, as of December 31, 2017.

CHAMPAIGN POSTAL's 479 members currently have $2.2 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.5 million.

Overall, Bankrate believes that, as of December 31, 2017, CHAMPAIGN POSTAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

CHAMPAIGN POSTAL scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

CHAMPAIGN POSTAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, reducing 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 interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

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

A below-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

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

CHAMPAIGN POSTAL scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

CHAMPAIGN POSTAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.