Safe and Sound

FIRST ATLANTIC

EATONTOWN, NJ
4
Star Rating
FIRST ATLANTIC is an EATONTOWN, NJ-based, NCUA-insured credit union that opened its doors in 1935. The credit union has assets of $248.1 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 48 full-time employees, the credit union holds loans and leases worth $165.8 million. FIRST ATLANTIC's 19,763 members currently have $224.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST ATLANTIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, more capital is preferred.

FIRST ATLANTIC fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

FIRST ATLANTIC appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets could eventually force a credit union to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

FIRST ATLANTIC scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

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

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

FIRST ATLANTIC scored 14 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

FIRST ATLANTIC had an earnings ratio of 0.00 percent in our test, above 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.