Safe and Sound

ELIZABETH POSTAL EMPLOYEES

ELIZABETH, NJ
4
Star Rating
ELIZABETH POSTAL EMPLOYEES is an NCUA-insured credit union founded in 1930 and currently headquartered in ELIZABETH, NJ. Regulatory filings show the credit union having assets of $752,323, as of June 30, 2017.

ELIZABETH POSTAL EMPLOYEES's 185 members currently have $544,188 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $207,662.

Overall, Bankrate believes that, as of June 30, 2017, ELIZABETH POSTAL EMPLOYEES exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is essential. It works as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. From a safety and soundness perspective, more capital is better.

ELIZABETH POSTAL EMPLOYEES achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.26.

ELIZABETH POSTAL EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 27.00 percent in our test, higher than the average for all credit unions.

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 troubled assets, such as past-due mortgages.

Having lots of these kinds of assets could eventually force a credit union to use capital to absorb losses, shrinking its equity buffer. 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, reducing earnings and increasing the chances of a future failure.

ELIZABETH POSTAL EMPLOYEES scored above the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

ELIZABETH POSTAL EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

ELIZABETH POSTAL EMPLOYEES had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with 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.