Safe and Sound

POST OFFICE EMPLOYEES'

METAIRIE, LA
3
Star Rating
POST OFFICE EMPLOYEES' is a METAIRIE, LA-based, NCUA-insured credit union founded in 1924. As of December 31, 2017, the credit union had assets of $40.2 million.

Members have $25.0 million on deposit tended by 18 full-time employees. With that footprint, the credit union has amassed loans and leases worth $25.0 million. POST OFFICE EMPLOYEES''s 5,938 members currently have $35.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POST OFFICE EMPLOYEES' exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. From a safety and soundness perspective, more capital is better.

POST OFFICE EMPLOYEES' scored below the national average of 15.65 on our test to measure capital adequacy, racking up 14 out of a possible 30 points.

POST OFFICE EMPLOYEES' appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, reducing its equity cushion. 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 lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, POST OFFICE EMPLOYEES' scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, POST OFFICE EMPLOYEES' scored 0 out of a possible 30, coming in below the national average of 10.11.

One sign that POST OFFICE EMPLOYEES' is beating 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.