Safe and Sound

STATE POLICE CREDIT UNION INC.

Meriden, CT
4
Star Rating
STATE POLICE CREDIT UNION INC. is a Meriden, CT-based, NCUA-insured credit union founded in 1960. As of December 31, 2017, the credit union held assets of $61.2 million.

Thanks to the efforts of 7 full-time employees, the credit union has amassed loans and leases worth $19.8 million. STATE POLICE CREDIT UNION INC.'s 3,612 members currently have $51.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STATE POLICE CREDIT UNION INC. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It works as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, more capital is preferred.

STATE POLICE CREDIT UNION INC. scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 22 out of a possible 30 points.

STATE POLICE CREDIT UNION INC.'s capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, reducing 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 money, decreasing earnings and elevating the chances of a failure in the future.

STATE POLICE CREDIT UNION INC. 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 .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

STATE POLICE CREDIT UNION INC. scored 6 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

STATE POLICE CREDIT UNION INC. 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.