Safe and Sound

PINE BLUFF POSTAL

PINE BLUFF, AR
3
Star Rating
PINE BLUFF, AR-based PINE BLUFF POSTAL is an NCUA-insured credit union started in 1971. The credit union has assets of $645,404, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $456,987. Its 102 members currently have $470,096 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PINE BLUFF POSTAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a buffer against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, PINE BLUFF POSTAL scored 30 out of a possible 30 points, beating out the national average of 15.65.

PINE BLUFF POSTAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

PINE BLUFF POSTAL came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

PINE BLUFF POSTAL scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

PINE BLUFF POSTAL had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.