Safe and Sound

HEALTHCARE EMPLOYEES

PRINCETON, NJ
3
Star Rating
PRINCETON, NJ-based HEALTHCARE EMPLOYEES is an NCUA-insured credit union started in 1984. The credit union holds $110.7 million in assets, according to June 30, 2017, regulatory filings.

With 20 full-time employees, the credit union has amassed loans and leases worth $75.3 million. Its 18,600 members currently have $101.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HEALTHCARE EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's 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 is an essential measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, HEALTHCARE EMPLOYEES received a score of 8 out of a possible 30 points, lower than the national average of 15.26.

HEALTHCARE EMPLOYEES appears to be on less solid financial footing 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

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, HEALTHCARE EMPLOYEES scored 32 out of a possible 40 points, below the national average of 38.15 points.

An above-average ratio of problem assets of 16.00 percent in our test was a potential cause for concern for HEALTHCARE EMPLOYEES.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

HEALTHCARE EMPLOYEES received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.