Safe and Sound

CAMDEN POLICE

CAMDEN, NJ
3
Star Rating
CAMDEN POLICE is an NCUA-insured credit union founded in 1949 and currently based in CAMDEN, NJ. Regulatory filings show the credit union having $672,321 in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $289,046. CAMDEN POLICE's 141 members currently have $612,693 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAMDEN 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 faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is key. When it comes to safety and soundness, the higher the capital, the better.

CAMDEN POLICE fell below the national average of 15.65 on our test to measure capital adequacy, scoring 8 out of a possible 30 points.

CAMDEN POLICE appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, CAMDEN POLICE scored 2 out of a possible 30, coming in below the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.