Safe and Sound

ATLANTIC CITY POLICE

Northfield, NJ
3
Star Rating
ATLANTIC CITY POLICE is a Northfield, NJ-based, NCUA-insured credit union dating back to 1939. Regulatory filings show the credit union having assets of $2.3 million, as of December 31, 2017.

ATLANTIC CITY POLICE's 323 members currently have $2.0 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $290,268.

Overall, Bankrate believes that, as of December 31, 2017, ATLANTIC CITY POLICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It works as a buffer against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, ATLANTIC CITY POLICE achieved a score of 16 out of a possible 30 points, beating the national average of 15.65.

ATLANTIC CITY POLICE'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 try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

ATLANTIC CITY POLICE did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, ATLANTIC CITY POLICE scored 0 out of a possible 30, less than the national average of 10.11.

ATLANTIC CITY POLICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.