Safe and Sound

CHARLESTON POSTAL

CHARLESTON, WV
3
Star Rating
Founded in 1925, CHARLESTON POSTAL is an NCUA-insured credit union based in CHARLESTON, WV. The credit union has assets of $4.1 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $2.8 million. Its 823 members currently have $3.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHARLESTON POSTAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

CHARLESTON POSTAL finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 10 out of a possible 30 points.

CHARLESTON POSTAL's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

CHARLESTON POSTAL exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

CHARLESTON POSTAL's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

CHARLESTON POSTAL scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.