Safe and Sound

JERSEY CITY FIREMEN

Jersey City, NJ
5
Star Rating
Jersey City, NJ-based JERSEY CITY FIREMEN is an NCUA-insured credit union started in 1950. The credit union holds assets of $12.0 million, according to December 31, 2017, regulatory filings.

Members have $3.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.0 million. Its 1,269 members currently have $7.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JERSEY CITY FIREMEN exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is essential. When it comes to safety and soundness, more capital is better.

JERSEY CITY FIREMEN scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

JERSEY CITY FIREMEN had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually be forced to use capital to absorb losses, reducing 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, resulting in diminished earnings and potentially more risk of a future failure.

JERSEY CITY FIREMEN scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to 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 buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

JERSEY CITY FIREMEN scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that the credit union is beating 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.