Safe and Sound

CHARLOTTESVILLE POSTAL

CHARLOTTESVILLE, VA
2
Star Rating
Founded in 1956, CHARLOTTESVILLE POSTAL is an NCUA-insured credit union based in CHARLOTTESVILLE, VA. Regulatory filings show the credit union having assets of $5.4 million, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $3.1 million. CHARLOTTESVILLE POSTAL's 812 members currently have $5.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHARLOTTESVILLE POSTAL exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major 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 works as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. From a safety and soundness perspective, more capital is preferred.

CHARLOTTESVILLE POSTAL received a score of 0 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having a large number of these types of assets could eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, CHARLOTTESVILLE POSTAL scored 0 out of a possible 30, falling short of the national average of 10.11.

CHARLOTTESVILLE POSTAL had an earnings ratio of -1.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.