Safe and Sound

FIRST JERSEY

WAYNE, NJ
NR
Star Rating
FIRST JERSEY is a WAYNE, NJ-based, NCUA-insured credit union dating back to 1929. Regulatory filings show the credit union having $85.8 million in assets, as of December 31, 2017.

Members have $58.6 million on deposit tended by 16 full-time employees. With that footprint, the credit union has amassed loans and leases worth $58.6 million. Its 9,045 members currently have $85.5 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial fortitude. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, FIRST JERSEY received a score of 0 out of a possible 30 points, falling short of the national average of 15.65.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

FIRST JERSEY fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 0 out of a possible 40 points .

The credit union's ratio of troubled assets was 1.00 percent in our test, identical to the national average.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

FIRST JERSEY scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One indication that FIRST JERSEY is outperforming its peers in this area was its earnings ratio of 9.00 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.