Safe and Sound

MIDDLESEX COUNTY N J EMP

New Brunswick, NJ
4
Star Rating
MIDDLESEX COUNTY N J EMP is an NCUA-insured credit union started in 1968 and currently based in New Brunswick, NJ. Regulatory filings show the credit union having $9.0 million in assets, as of December 31, 2017.

With 3 full-time employees, the credit union has amassed loans and leases worth $2.2 million. Its 1,641 members currently have $7.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIDDLESEX COUNTY N J EMP exhibited a good condition, earning 4 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

MIDDLESEX COUNTY N J EMP scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 26 out of a possible 30 points.

MIDDLESEX COUNTY N J EMP appears to be on more solid financial footing than its peers, with a capitalization ratio of 26.00 percent in our test, better than 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 past-due loans.

Having extensive holdings of these kinds of assets may eventually require 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 money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MIDDLESEX COUNTY N J EMP scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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

MIDDLESEX COUNTY N J EMP did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that MIDDLESEX COUNTY N J EMP is running ahead of 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.