Safe and Sound

HOBOKEN SCHOOL EMPLOYEES

HOBOKEN, NJ
5
Star Rating
HOBOKEN SCHOOL EMPLOYEES is an NCUA-insured credit union founded in 1937 and currently headquartered in HOBOKEN, NJ. The credit union holds assets of $51.7 million, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union currently holds loans and leases worth $23.8 million. HOBOKEN SCHOOL EMPLOYEES's 1,930 members currently have $37.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOBOKEN SCHOOL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, the more capital, the better.

HOBOKEN SCHOOL EMPLOYEES racked up 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

HOBOKEN SCHOOL EMPLOYEES had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to cover losses, reducing its buffer of equity. 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, diminishing earnings and increasing the chances of a future failure.

HOBOKEN SCHOOL EMPLOYEES beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

HOBOKEN SCHOOL EMPLOYEES's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

HOBOKEN SCHOOL EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.