Safe and Sound

PASSAIC POSTAL EMPLOYEES

PASSAIC, NJ
2
Star Rating
PASSAIC POSTAL EMPLOYEES is a PASSAIC, NJ-based, NCUA-insured credit union founded in 1934. The credit union holds assets of $542,912, according to December 31, 2017, regulatory filings.

Its 174 members currently have $462,027 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $215,410.

Overall, Bankrate believes that, as of December 31, 2017, PASSAIC POSTAL EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When it comes to safety and soundness, the more capital, the better.

PASSAIC POSTAL EMPLOYEES achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

PASSAIC POSTAL EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, PASSAIC POSTAL EMPLOYEES scored 28 out of a possible 40 points, coming in below the national average of 38.09 points.

Troubled assets made up 0.00 percent of PASSAIC POSTAL EMPLOYEES's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

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

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.