Safe and Sound

POLISH & SLAVIC

BROOKLYN, NY
4
Star Rating
BROOKLYN, NY-based POLISH & SLAVIC is an NCUA-insured credit union founded in 1976. Regulatory filings show the credit union having assets of $1.88 billion, as of December 31, 2017.

With 298 full-time employees, the credit union holds loans and leases worth $1.05 billion. Its 92,915 members currently have $1.67 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POLISH & SLAVIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a cushion against losses and as protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

POLISH & SLAVIC received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

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

Asset Quality Score

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

Having large numbers of these types of assets could eventually force a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

POLISH & SLAVIC did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

POLISH & SLAVIC scored 14 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.11.

One indication that POLISH & SLAVIC is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.