Safe and Sound

MERIDEN POSTAL EMPLOYEES

Meriden, CT
4
Star Rating
Founded in 1935, MERIDEN POSTAL EMPLOYEES is an NCUA-insured credit union headquartered in Meriden, CT. The credit union holds assets of $586,120, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $150,927. Its 101 members currently have $434,032 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MERIDEN POSTAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score 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 strength, capital is important. It works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

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

MERIDEN POSTAL EMPLOYEES's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number 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 interest for the credit union, pushing down earnings and elevating the chances of a future failure.

MERIDEN POSTAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

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

MERIDEN POSTAL EMPLOYEES 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.