Safe and Sound

PICATINNY

DOVER, NJ
4
Star Rating
Started in 1939, PICATINNY is an NCUA-insured credit union based in DOVER, NJ. As of December 31, 2017, the credit union had assets of $334.3 million.

With 55 full-time employees, the credit union has amassed loans and leases worth $151.0 million. PICATINNY's 17,598 members currently have $305.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PICATINNY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's 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 works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, PICATINNY received a score of 8 out of a possible 30 points, below the national average of 15.65.

PICATINNY's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, shrinking its buffer of equity. 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 reduced earnings and potentially more risk of a future failure.

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

A lower-than-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 has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, PICATINNY scored 8 out of a possible 30, failing to reach the national average of 10.11.

One sign that PICATINNY 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.