Safe and Sound

LOS ANGELES POLICE

Van Nuys, CA
4
Star Rating
LOS ANGELES POLICE is an NCUA-insured credit union founded in 1959 and currently headquartered in Van Nuys, CA. As of December 31, 2017, the credit union held assets of $906.3 million.

Members have $594.2 million on deposit tended by 148 full-time employees. With that footprint, the credit union has amassed loans and leases worth $594.2 million. LOS ANGELES POLICE's 39,636 members currently have $790.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOS ANGELES POLICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. It follows then that a credit union's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

LOS ANGELES POLICE did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

LOS ANGELES 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 estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets means a credit union may have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, LOS ANGELES POLICE scored 10 out of a possible 30, less than the national average of 10.11.

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