Safe and Sound

JM ASSOCIATES

Jacksonville, FL
5
Star Rating
Jacksonville, FL-based JM ASSOCIATES is an NCUA-insured credit union started in 1980. The credit union has assets of $118.1 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 24 full-time employees, the credit union holds loans and leases worth $45.4 million. Its 7,918 members currently have $100.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, JM ASSOCIATES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

JM ASSOCIATES racked up 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.26.

JM ASSOCIATES's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, JM ASSOCIATES scored 40 out of a possible 40 points, better than the national average of 38.15 points.

JM ASSOCIATES's ratio of troubled assets was 2.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

JM ASSOCIATES did above-average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

JM ASSOCIATES had an earnings ratio of 11.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.