Safe and Sound

FAIRLEIGH DICKINSON UNIVERSTY

Madison, NJ
3
Star Rating
FAIRLEIGH DICKINSON UNIVERSTY is an NCUA-insured credit union founded in 1965 and currently headquartered in Madison, NJ. Regulatory filings show the credit union having $12.2 million in assets, as of December 31, 2017.

With 3 full-time employees, the credit union currently holds loans and leases worth $7.9 million. Its 1,824 members currently have $10.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAIRLEIGH DICKINSON UNIVERSTY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial stability, capital is useful. When looking at safety and soundness, the more capital, the better.

FAIRLEIGH DICKINSON UNIVERSTY came in below the national average of 15.65 on our test to measure capital adequacy, racking up 14 out of a possible 30 points.

FAIRLEIGH DICKINSON UNIVERSTY had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, FAIRLEIGH DICKINSON UNIVERSTY scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can 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 times of trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, FAIRLEIGH DICKINSON UNIVERSTY scored 2 out of a possible 30, failing to reach the national average of 10.11.

One sign that the credit union is beating 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.