Safe and Sound

ISRAEL MEMORIAL A M E

Newark, NJ
4
Star Rating
ISRAEL MEMORIAL A M E is a Newark, NJ-based, NCUA-insured credit union started in 1956. Regulatory filings show the credit union having assets of $381,318, as of December 31, 2017.

The credit union currently holds loans and leases worth $83,123. Its 171 members currently have $219,362 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ISRAEL MEMORIAL A M E exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

ISRAEL MEMORIAL A M E beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 30 out of a possible 30 points.

ISRAEL MEMORIAL A M E had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, diminishing its equity cushion. 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.

ISRAEL MEMORIAL A M E exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, ISRAEL MEMORIAL A M E scored 0 out of a possible 30, falling short of the national average of 10.11.

One indication that ISRAEL MEMORIAL A M E is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.