Safe and Sound

NOVA UA

CLIFTON, NJ
4
Star Rating
Started in 1960, NOVA UA is an NCUA-insured credit union based in CLIFTON, NJ. Regulatory filings show the credit union having assets of $118.1 million, as of December 31, 2017.

Thanks to the efforts of 10 full-time employees, the credit union holds loans and leases worth $56.1 million. Its 3,715 members currently have $93.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NOVA UA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

NOVA UA beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 18 out of a possible 30 points.

NOVA UA had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, NOVA UA scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

NOVA UA scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

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