Safe and Sound

MCGRAW HILL

East Windsor, NJ
3
Star Rating
Founded in 1935, MCGRAW HILL is an NCUA-insured credit union headquartered in East Windsor, NJ. The credit union has $400.9 million in assets, according to June 30, 2017, regulatory filings.

Members have $315.4 million on deposit tended by 57 full-time employees. With that footprint, the credit union has amassed loans and leases worth $315.4 million. Its 22,767 members currently have $287.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MCGRAW HILL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. When it comes to safety and soundness, the more capital, the better.

MCGRAW HILL fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

MCGRAW HILL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate 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 means a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.

MCGRAW HILL scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

MCGRAW HILL's ratio of problem assets was 5.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

MCGRAW HILL underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that MCGRAW HILL is lagging behind its peers in this area was its earnings ratio of 0.00 percent in our test, below 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.