Safe and Sound

MARYLAND POSTAL

GAITHERSBURG, MD
5
Star Rating
GAITHERSBURG, MD-based MARYLAND POSTAL is an NCUA-insured credit union started in 1952. Regulatory filings show the credit union having assets of $2.5 million, as of December 31, 2017.

The credit union has amassed loans and leases worth $1.7 million. Its 501 members currently have $2.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MARYLAND POSTAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

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 periods of economic instability for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

MARYLAND POSTAL scored above the national average of 15.65 points on our test to measure capital adequacy, racking up 20 out of a possible 30 points.

MARYLAND POSTAL's capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, MARYLAND POSTAL scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, MARYLAND POSTAL scored 14 out of a possible 30, better than the national average of 10.11.

MARYLAND POSTAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.