Safe and Sound

GLOBAL 1

PENNSAUKEN, NJ
1
Star Rating
GLOBAL 1 is an NCUA-insured credit union started in 1975 and currently headquartered in PENNSAUKEN, NJ. As of December 31, 2017, the credit union held assets of $7.5 million.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $3.7 million. GLOBAL 1's 1,226 members currently have $6.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GLOBAL 1 exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. 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 as protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is a valuable measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

GLOBAL 1 received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

GLOBAL 1 had a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect 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 lots of these kinds of assets means a credit union could 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 money, diminishing earnings and increasing the risk of a failure in the future.

GLOBAL 1 scored 28 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

A below-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 profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

GLOBAL 1 did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that the credit union is outperforming 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.