Safe and Sound

MANVILLE AREA

MANVILLE, NJ
3
Star Rating
Founded in 1937, MANVILLE AREA is an NCUA-insured credit union based in MANVILLE, NJ. As of December 31, 2017, the credit union had assets of $28.1 million.

Members have $17.8 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $17.8 million. MANVILLE AREA's 2,038 members currently have $25.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MANVILLE AREA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a cushion against losses and as protection for members during times of economic instability for the credit union. When looking at safety and soundness, more capital is better.

MANVILLE AREA received a score of 12 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

MANVILLE AREA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these kinds of assets may eventually force a credit union to use capital to absorb losses, cutting down on 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 interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

MANVILLE AREA scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of 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 greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

MANVILLE AREA did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.