Safe and Sound

LOUISVILLE METRO POLICE OFFICERS

LOUISVILLE, KY
NR
Star Rating
Started in 1942, LOUISVILLE METRO POLICE OFFICERS is an NCUA-insured credit union headquartered in LOUISVILLE, KY. The credit union holds assets of $25.1 million, according to December 31, 2017, regulatory filings.

Members have $14.6 million on deposit tended by 10 full-time employees. With that footprint, the credit union currently holds loans and leases worth $14.6 million. Its 3,564 members currently have $21.9 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, LOUISVILLE METRO POLICE OFFICERS received a score of 0 out of a possible 30 points, coming in below the national average of 15.65.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, LOUISVILLE METRO POLICE OFFICERS scored 0 out of a possible 40 points, coming in below the national average of 38.09 points.

A lower-than-average ratio of troubled assets of -29.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, LOUISVILLE METRO POLICE OFFICERS scored 0 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.