Safe and Sound

MEMBER'S 1ST OF NJ

VINELAND, NJ
3
Star Rating
Started in 1938, MEMBER'S 1ST OF NJ is an NCUA-insured credit union based in VINELAND, NJ. Regulatory filings show the credit union having $55.6 million in assets, as of December 31, 2017.

With 22 full-time employees, the credit union has amassed loans and leases worth $33.0 million. Its 8,041 members currently have $51.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBER'S 1ST OF NJ 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 did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It works as a buffer against losses and affords protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

MEMBER'S 1ST OF NJ fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 6 out of a possible 30 points.

MEMBER'S 1ST OF NJ's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due 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 could eventually be required to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

MEMBER'S 1ST OF NJ finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

MEMBER'S 1ST OF NJ scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One sign that MEMBER'S 1ST OF NJ is doing better than 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.