Safe and Sound

HEALTHCARE EMPLOYEES

PRINCETON, NJ
3
Star Rating
PRINCETON, NJ-based HEALTHCARE EMPLOYEES is an NCUA-insured credit union founded in 1984. Regulatory filings show the credit union having assets of $111.2 million, as of December 31, 2017.

With 20 full-time employees, the credit union has amassed loans and leases worth $73.6 million. HEALTHCARE EMPLOYEES's 18,440 members currently have $101.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTHCARE EMPLOYEES exhibited a generally satisfactory condition, earning 3 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, HEALTHCARE EMPLOYEES received a score of 8 out of a possible 30 points, falling short of the national average of 15.65.

HEALTHCARE EMPLOYEES had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets may eventually require a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, HEALTHCARE EMPLOYEES scored 32 out of a possible 40 points, failing to reach the national average of 38.09 points.

Troubled assets made up 0.00 percent of HEALTHCARE EMPLOYEES's total assets in our test, below the national average and suggestive of greater financial strength than 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, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

HEALTHCARE EMPLOYEES received below-average marks on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One indication that the credit union is beating 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.