Safe and Sound

MOUNT VERNON NY POSTAL EMPLOYEES

Mount Vernon, NY
2
Star Rating
Founded in 1935, MOUNT VERNON NY POSTAL EMPLOYEES is an NCUA-insured credit union based in Mount Vernon, NY. The credit union has $1.7 million in assets, according to December 31, 2017, regulatory filings.

Its 282 members currently have $1.4 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $683,633.

Overall, Bankrate believes that, as of December 31, 2017, MOUNT VERNON NY POSTAL EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

MOUNT VERNON NY POSTAL EMPLOYEES racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

MOUNT VERNON NY POSTAL EMPLOYEES had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

MOUNT VERNON NY POSTAL EMPLOYEES scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 16 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

MOUNT VERNON NY POSTAL EMPLOYEES did below-average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.