Safe and Sound

JERSEY CITY POLICE

JERSEY CITY, NJ
5
Star Rating
JERSEY CITY POLICE is an NCUA-insured credit union founded in 1950 and currently based in JERSEY CITY, NJ. As of December 31, 2017, the credit union had assets of $9.4 million.

Members have $2.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.0 million. JERSEY CITY POLICE's 1,325 members currently have $8.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JERSEY CITY POLICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of economic instability for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

JERSEY CITY POLICE beat out the national average of 15.65 points on our test to measure capital adequacy, scoring 20 out of a possible 30 points.

JERSEY CITY POLICE appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets may eventually have to use capital to absorb losses, diminishing 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, resulting in reduced earnings and potentially more risk of a future failure.

JERSEY CITY POLICE did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-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

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

JERSEY CITY POLICE scored 12 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

One sign that JERSEY CITY POLICE 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.