Safe and Sound

ASPIRE

CLARK, NJ
NR
Star Rating
ASPIRE is an NCUA-insured credit union founded in 1948 and currently headquartered in CLARK, NJ. As of December 31, 2017, the credit union had assets of $158.0 million.

With 44 full-time employees, the credit union currently holds loans and leases worth $124.7 million. Its 22,082 members currently have $146.9 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is useful. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, ASPIRE received a score of 4 out of a possible 30 points, lower than the national average of 15.65.

ASPIRE's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to absorb losses, shrinking 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, ASPIRE scored 8 out of a possible 40 points, falling short of the national average of 38.09 points.

The credit union's ratio of troubled assets was 1.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

ASPIRE scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

The credit union had an earnings ratio of -1.00 percent in our test, better than the average for all credit unions, an indication 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.