Safe and Sound

DES MOINES COUNTY POSTAL

Burlington, IA
4
Star Rating
Burlington, IA-based DES MOINES COUNTY POSTAL is an NCUA-insured credit union founded in 1941. As of December 31, 2017, the credit union held assets of $2.2 million.

The credit union has amassed loans and leases worth $1.7 million. Its 410 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DES MOINES COUNTY POSTAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

DES MOINES COUNTY POSTAL did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

DES MOINES COUNTY POSTAL's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb 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 money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, DES MOINES COUNTY POSTAL scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

DES MOINES COUNTY POSTAL scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

DES MOINES COUNTY POSTAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.