Safe and Sound

MIDDLESEX-ESSEX POSTAL EMPLOYEES

NORTH READING, MA
5
Star Rating
MIDDLESEX-ESSEX POSTAL EMPLOYEES is an NCUA-insured credit union started in 1969 and currently headquartered in NORTH READING, MA. As of December 31, 2017, the credit union held assets of $5.0 million.

The credit union currently holds loans and leases worth $1.8 million. MIDDLESEX-ESSEX POSTAL EMPLOYEES's 839 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDDLESEX-ESSEX POSTAL EMPLOYEES exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, MIDDLESEX-ESSEX POSTAL EMPLOYEES scored 30 out of a possible 30 points, better than the national average of 15.65.

MIDDLESEX-ESSEX POSTAL EMPLOYEES appears to be more well prepared for financial trouble 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

Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced 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 test of asset quality, MIDDLESEX-ESSEX POSTAL EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

MIDDLESEX-ESSEX POSTAL EMPLOYEES's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

MIDDLESEX-ESSEX POSTAL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that MIDDLESEX-ESSEX POSTAL EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.