Safe and Sound

CLIFTON NJ POSTAL EMPLOYEES

CLIFTON, NJ
5
Star Rating
CLIFTON NJ POSTAL EMPLOYEES is a CLIFTON, NJ-based, NCUA-insured credit union started in 1935. Regulatory filings show the credit union having $3.0 million in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $774,028. CLIFTON NJ POSTAL EMPLOYEES's 373 members currently have $1.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CLIFTON NJ POSTAL EMPLOYEES 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 grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, more capital is better.

CLIFTON NJ POSTAL EMPLOYEES racked up 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

CLIFTON NJ POSTAL EMPLOYEES had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, CLIFTON NJ POSTAL EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

CLIFTON NJ POSTAL EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

CLIFTON NJ POSTAL EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.