Safe and Sound

MESSIAH BAPTIST CHURCH

East Orange, NJ
3
Star Rating
Founded in 1973, MESSIAH BAPTIST CHURCH is an NCUA-insured credit union headquartered in East Orange, NJ. As of December 31, 2017, the credit union had assets of $205,244.

Its 169 members currently have $178,577 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $46,051.

Overall, Bankrate believes that, as of December 31, 2017, MESSIAH BAPTIST CHURCH exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

MESSIAH BAPTIST CHURCH did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 16 out of a possible 30 points.

MESSIAH BAPTIST CHURCH's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these types of assets suggests a credit union could have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

MESSIAH BAPTIST CHURCH scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

MESSIAH BAPTIST CHURCH scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.