Safe and Sound

K & E EMPLOYEES

Hoboken, NJ
3
Star Rating
Started in 1949, K & E EMPLOYEES is an NCUA-insured credit union headquartered in Hoboken, NJ. Regulatory filings show the credit union having $760,870 in assets, as of June 30, 2017.

The credit union holds loans and leases worth $430,179. K & E EMPLOYEES's 87 members currently have $685,687 in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, K & E EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

K & E EMPLOYEES came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

K & E EMPLOYEES's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended 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 problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, diminishing its buffer 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, K & E EMPLOYEES scored 36 out of a possible 40 points, less than the national average of 38.15 points.

Troubled assets made up 11.00 percent of K & E EMPLOYEES's total assets in our test, higher than the national average and a potential cause for concern.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

K & E EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that K & E EMPLOYEES is running behind its peers in this area was its earnings ratio of -65.00 percent in our test, below 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.