Safe and Sound

JERSEY SHORE

Northfield, NJ
3
Star Rating
JERSEY SHORE is an NCUA-insured credit union founded in 1963 and currently headquartered in Northfield, NJ. The credit union holds $150.2 million in assets, according to December 31, 2017, regulatory filings.

With 43 full-time employees, the credit union has amassed loans and leases worth $89.8 million. Its 13,884 members currently have $137.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JERSEY SHORE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
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 when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, JERSEY SHORE received a score of 6 out of a possible 30 points, below the national average of 15.65.

JERSEY SHORE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, JERSEY SHORE scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, JERSEY SHORE scored 8 out of a possible 30, coming in below the national average of 10.11.

JERSEY SHORE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.