Safe and Sound

QUAD CITIES POSTAL

MOLINE, IL
3
Star Rating
MOLINE, IL-based QUAD CITIES POSTAL is an NCUA-insured credit union started in 1938. The credit union holds $6.9 million in assets, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union holds loans and leases worth $4.4 million. QUAD CITIES POSTAL's 857 members currently have $6.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, QUAD CITIES POSTAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is important. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the higher the capital, the better.

QUAD CITIES POSTAL received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

QUAD CITIES POSTAL had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having lots of these kinds of assets means a credit union could eventually have to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

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

QUAD CITIES POSTAL's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, QUAD CITIES POSTAL scored 2 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.