Safe and Sound

PUBLIC SERVICE E.D. TRENTON

MERCERVILLE, NJ
5
Star Rating
MERCERVILLE, NJ-based PUBLIC SERVICE E.D. TRENTON is an NCUA-insured credit union started in 1956. As of December 31, 2017, the credit union had assets of $3.8 million.

The credit union currently holds loans and leases worth $486,659. PUBLIC SERVICE E.D. TRENTON's 388 members currently have $2.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUBLIC SERVICE E.D. TRENTON exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the higher the capital, the better.

PUBLIC SERVICE E.D. TRENTON achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

PUBLIC SERVICE E.D. TRENTON's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with extensive holdings of these types of assets could eventually have to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

PUBLIC SERVICE E.D. TRENTON scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and 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. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

PUBLIC SERVICE E.D. TRENTON underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of its peers in this area.

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.