Safe and Sound

POSTAL FAMILY CREDIT UNION, INC.

CINCINNATI, OH
4
Star Rating
POSTAL FAMILY CREDIT UNION, INC. is an NCUA-insured credit union founded in 1932 and currently based in CINCINNATI, OH. As of December 31, 2017, the credit union had assets of $59.6 million.

Members have $25.2 million on deposit tended by 10 full-time employees. With that footprint, the credit union holds loans and leases worth $25.2 million. Its 6,840 members currently have $50.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POSTAL FAMILY CREDIT UNION, INC. 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 key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of financial instability for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

POSTAL FAMILY CREDIT UNION, INC. achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

POSTAL FAMILY CREDIT UNION, INC. appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

POSTAL FAMILY CREDIT UNION, INC. beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 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 profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, POSTAL FAMILY CREDIT UNION, INC. scored 6 out of a possible 30, lower than the national average of 10.11.

POSTAL FAMILY CREDIT UNION, INC. had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.