Safe and Sound

BARD EMPLOYEES

New Providence, NJ
1
Star Rating
New Providence, NJ-based BARD EMPLOYEES is an NCUA-insured credit union founded in 1975. The credit union holds $18.3 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $5.6 million. BARD EMPLOYEES's 1,518 members currently have $16.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BARD EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial strength. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is better.

BARD EMPLOYEES fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 6 out of a possible 30 points.

BARD EMPLOYEES had a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

BARD EMPLOYEES fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can 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 tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

BARD EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that BARD EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.