Safe and Sound

SPRINGFIELD POSTAL EMPLOYEES

SPRINGFIELD, OH
4
Star Rating
SPRINGFIELD, OH-based SPRINGFIELD POSTAL EMPLOYEES is an NCUA-insured credit union founded in 1950. As of December 31, 2017, the credit union held assets of $4.6 million.

Its 576 members currently have $3.9 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $2.3 million.

Overall, Bankrate believes that, as of December 31, 2017, SPRINGFIELD POSTAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's 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 acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SPRINGFIELD POSTAL EMPLOYEES achieved a score of 20 out of a possible 30 points, beating the national average of 15.65.

SPRINGFIELD POSTAL EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

SPRINGFIELD POSTAL EMPLOYEES beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

SPRINGFIELD POSTAL EMPLOYEES did below-average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.