Safe and Sound

ST. LOUIS POLICEMEN`S

saint louis, MO
5
Star Rating
saint louis, MO-based ST. LOUIS POLICEMEN`S is an NCUA-insured credit union started in 1934. The credit union holds assets of $18.7 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $5.3 million. Its 2,352 members currently have $15.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. LOUIS POLICEMEN`S exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. From a safety and soundness perspective, the more capital, the better.

ST. LOUIS POLICEMEN`S scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 26 out of a possible 30 points.

ST. LOUIS POLICEMEN`S's capitalization ratio of 26.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, ST. LOUIS POLICEMEN`S scored 40 out of a possible 40 points, beating the national average of 38.09 points.

ST. LOUIS POLICEMEN`S's ratio of troubled 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

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ST. LOUIS POLICEMEN`S scored 8 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 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.