Safe and Sound

BLOOMFIELD FIRE AND POLICE

Bloomfield, NJ
5
Star Rating
BLOOMFIELD FIRE AND POLICE is an NCUA-insured credit union founded in 1951 and currently headquartered in Bloomfield, NJ. As of December 31, 2017, the credit union had assets of $6.4 million.

Members have $4.4 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $4.4 million. Its 1,255 members currently have $5.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLOOMFIELD FIRE AND POLICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, BLOOMFIELD FIRE AND POLICE scored 26 out of a possible 30 points, beating the national average of 15.65.

BLOOMFIELD FIRE AND POLICE appears to be more resilient than its peers, with a capitalization ratio of 26.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these types of assets may eventually have to use capital to absorb 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, diminishing earnings and increasing the risk of a failure in the future.

BLOOMFIELD FIRE AND POLICE scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

BLOOMFIELD FIRE AND POLICE's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

BLOOMFIELD FIRE AND POLICE fell behind the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

BLOOMFIELD FIRE AND POLICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.