Safe and Sound

PROVO POLICE & FIRE DEPT.

Provo, UT
4
Star Rating
PROVO POLICE & FIRE DEPT. is a Provo, UT-based, NCUA-insured credit union that opened its doors in 1949. As of December 31, 2017, the credit union had assets of $2.9 million.

The credit union has amassed loans and leases worth $1.8 million. Its 961 members currently have $2.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PROVO POLICE & FIRE DEPT. 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 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 is a useful measurement of an institution's financial resilience. It works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is better.

PROVO POLICE & FIRE DEPT. received a score of 14 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

PROVO POLICE & FIRE DEPT. had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker 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 problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

PROVO POLICE & FIRE DEPT. scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

PROVO POLICE & FIRE DEPT.'s ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

PROVO POLICE & FIRE DEPT. scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One sign that PROVO POLICE & FIRE DEPT. 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.