Safe and Sound

M & C MENLO PARK

Iselin, NJ
2
Star Rating
M & C MENLO PARK is an Iselin, NJ-based, NCUA-insured credit union that opened its doors in 1967. As of December 31, 2017, the credit union had assets of $1.7 million.

Its 289 members currently have $1.6 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $687,097.

Overall, Bankrate believes that, as of December 31, 2017, M & C MENLO PARK exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

M & C MENLO PARK finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

M & C MENLO PARK had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

M & C MENLO PARK finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 16 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and suggestive 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, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, M & C MENLO PARK scored 4 out of a possible 30, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.