Safe and Sound

GARDEN SAVINGS

PARSIPPANY, NJ
2
Star Rating
Founded in 1968, GARDEN SAVINGS is an NCUA-insured credit union headquartered in PARSIPPANY, NJ. The credit union holds assets of $358.9 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 70 full-time employees, the credit union holds loans and leases worth $230.0 million. Its 27,537 members currently have $316.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GARDEN SAVINGS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, GARDEN SAVINGS received a score of 10 out of a possible 30 points, less than the national average of 15.26.

GARDEN SAVINGS appears to be weaker than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having large numbers of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing 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, resulting in lower earnings and potentially more risk of a future failure.

GARDEN SAVINGS scored 32 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.

A greater-than-average ratio of troubled assets of 16.00 percent in our test was a potential area of concern for the credit union.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

GARDEN SAVINGS scored 2 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

GARDEN SAVINGS had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, an indication that it's running neck and neck with 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.