Safe and Sound

CREDIT UNION OF NEW JERSEY

EWING, NJ
2
Star Rating
CREDIT UNION OF NEW JERSEY is a EWING, NJ-based, NCUA-insured credit union that opened its doors in 1943. Regulatory filings show the credit union having assets of $344.7 million, as of December 31, 2017.

Members have $316.5 million on deposit tended by 82 full-time employees. With that footprint, the credit union currently holds loans and leases worth $316.5 million. CREDIT UNION OF NEW JERSEY's 39,344 members currently have $315.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF NEW JERSEY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

CREDIT UNION OF NEW JERSEY received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

CREDIT UNION OF NEW JERSEY had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

CREDIT UNION OF NEW JERSEY fell below the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

A lower-than-average ratio of problem 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 earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, CREDIT UNION OF NEW JERSEY scored 8 out of a possible 30, falling short of the national average of 10.11.

One indication that CREDIT UNION OF NEW JERSEY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.