Safe and Sound

DELAWARE STATE POLICE

Georgetown, DE
2
Star Rating
DELAWARE STATE POLICE is a Georgetown, DE-based, NCUA-insured credit union started in 1960. The credit union has assets of $122.9 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 24 full-time employees, the credit union holds loans and leases worth $52.4 million. DELAWARE STATE POLICE's 9,929 members currently have $111.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DELAWARE STATE POLICE exhibited a below-average condition, earning 2 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 evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

DELAWARE STATE POLICE received a score of 10 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

DELAWARE STATE POLICE's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having lots of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking 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, reducing earnings and elevating the chances of a failure in the future.

DELAWARE STATE POLICE scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

The credit union'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 affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

DELAWARE STATE POLICE fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that the credit union is running ahead of 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.