Safe and Sound

ASPIRE

CLARK, NJ
1
Star Rating
Founded in 1948, ASPIRE is an NCUA-insured credit union based in CLARK, NJ. Regulatory filings show the credit union having $168.9 million in assets, as of June 30, 2017.

With 44 full-time employees, the credit union holds loans and leases worth $133.4 million. Its 29,993 members currently have $154.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ASPIRE exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key 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 crucial measurement of an institution's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

ASPIRE fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 6 out of a possible 30 points.

ASPIRE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, ASPIRE scored 12 out of a possible 40 points, lower than the national average of 38.15 points.

Troubled assets made up 57.00 percent of the credit union's total assets in our test, exceeding the national average and something to watch.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, ASPIRE scored 0 out of a possible 30, coming in below the national average of 10.31.

One sign that ASPIRE is underperforming its peers in this area was its earnings ratio of -42.00 percent in our test, less 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.