Safe and Sound

LONG ISLAND CITY POSTAL EMPLOYEES

LONG ISLAND CIT, NY
4
Star Rating
Started in 1935, LONG ISLAND CITY POSTAL EMPLOYEES is an NCUA-insured credit union headquartered in LONG ISLAND CIT, NY. As of December 31, 2017, the credit union had assets of $2.8 million.

The credit union holds loans and leases worth $106,724. LONG ISLAND CITY POSTAL EMPLOYEES's 292 members currently have $2.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LONG ISLAND CITY POSTAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, LONG ISLAND CITY POSTAL EMPLOYEES achieved a score of 30 out of a possible 30 points, beating out the national average of 15.65.

LONG ISLAND CITY POSTAL EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended 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 unpaid loans.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, LONG ISLAND CITY POSTAL EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of LONG ISLAND CITY POSTAL EMPLOYEES's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LONG ISLAND CITY POSTAL EMPLOYEES scored 0 out of a possible 30, lower than the national average of 10.11.

LONG ISLAND CITY POSTAL EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.