Safe and Sound

POSTAL EMPLOYEES

HUNTSVILLE, AL
4
Star Rating
POSTAL EMPLOYEES is a HUNTSVILLE, AL-based, NCUA-insured credit union that opened its doors in 1928. As of December 31, 2017, the credit union held assets of $3.1 million.

POSTAL EMPLOYEES's 340 members currently have $2.7 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.3 million.

Overall, Bankrate believes that, as of December 31, 2017, POSTAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important 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 works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

POSTAL EMPLOYEES achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

POSTAL EMPLOYEES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a failure in the future.

POSTAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

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

One sign that POSTAL EMPLOYEES is doing better than 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.