Safe and Sound

GARDEN STATE

MOORESTOWN, NJ
3
Star Rating
GARDEN STATE is an NCUA-insured credit union founded in 1960 and currently based in MOORESTOWN, NJ. As of December 31, 2017, the credit union held assets of $31.7 million.

Its 4,021 members currently have $28.6 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $19.1 million.

Overall, Bankrate believes that, as of December 31, 2017, GARDEN STATE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, GARDEN STATE received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

GARDEN STATE had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets means a credit union may have 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 money, diminishing earnings and increasing the risk of a future failure.

GARDEN STATE scored 32 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

GARDEN STATE's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

GARDEN STATE received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.