Safe and Sound

HOLYOKE POSTAL

Holyoke, MA
4
Star Rating
Started in 1926, HOLYOKE POSTAL is an NCUA-insured credit union based in HOLYOKE, MA. As of December 31, 2017, the credit union had assets of $3.3 million.

The credit union currently holds loans and leases worth $371,836. Its 276 members currently have $2.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOLYOKE 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 important criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a buffer against losses and provides protection for members during times of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

HOLYOKE POSTAL racked up 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

HOLYOKE POSTAL's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, decreasing 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.

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

HOLYOKE 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

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, HOLYOKE POSTAL scored 0 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.