Safe and Sound

PEORIA POSTAL EMPLOYEES

Peoria, IL
5
Star Rating
Peoria, IL-based PEORIA POSTAL EMPLOYEES is an NCUA-insured credit union started in 1928. Regulatory filings show the credit union having assets of $10.4 million, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $5.7 million. PEORIA POSTAL EMPLOYEES's 1,306 members currently have $8.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEORIA 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 key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, PEORIA POSTAL EMPLOYEES racked up 30 out of a possible 30 points, above the national average of 15.65.

PEORIA POSTAL EMPLOYEES's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union may have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

PEORIA POSTAL EMPLOYEES exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of PEORIA POSTAL EMPLOYEES's total assets in our test, lower than the national average and suggestive 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. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

PEORIA POSTAL EMPLOYEES scored 2 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that PEORIA POSTAL EMPLOYEES is doing better than 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.