Safe and Sound

POSTAL EMPLOYEES OF TROY, N.Y.

TROY, NY
4
Star Rating
TROY, NY-based POSTAL EMPLOYEES OF TROY, N.Y. is an NCUA-insured credit union started in 1934. As of December 31, 2017, the credit union had assets of $1.4 million.

Its 142 members currently have $894,974 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $321,873.

Overall, Bankrate believes that, as of December 31, 2017, POSTAL EMPLOYEES OF TROY, N.Y. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is essential. It acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, POSTAL EMPLOYEES OF TROY, N.Y. achieved a score of 30 out of a possible 30 points, beating out the national average of 15.65.

POSTAL EMPLOYEES OF TROY, N.Y. had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, decreasing its cushion of equity. 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, diminishing earnings and increasing the risk of a future failure.

POSTAL EMPLOYEES OF TROY, N.Y. scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, POSTAL EMPLOYEES OF TROY, N.Y. scored 0 out of a possible 30, falling short of the national average of 10.11.

POSTAL EMPLOYEES OF TROY, N.Y. had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.