Safe and Sound

OCNAC #1

jersey city, NJ
3
Star Rating
OCNAC #1 is an NCUA-insured credit union started in 1949 and currently headquartered in jersey city, NJ. Regulatory filings show the credit union having $6.3 million in assets, as of December 31, 2017.

Members have $2.4 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.4 million. OCNAC #1's 2,486 members currently have $5.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OCNAC #1 exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

OCNAC #1 scored below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

OCNAC #1 had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually be required to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, OCNAC #1 scored 32 out of a possible 40 points, falling short of the national average of 38.09 points.

A lower-than-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

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

OCNAC #1 underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that OCNAC #1 is beating 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.