Safe and Sound

PUBLIC SERVICE H C EMPLOYEES

Brick, NJ
5
Star Rating
PUBLIC SERVICE H C EMPLOYEES is a Brick, NJ-based, NCUA-insured credit union that opened its doors in 1953. The credit union holds $8.5 million in assets, according to December 31, 2017, regulatory filings.

PUBLIC SERVICE H C EMPLOYEES's 1,009 members currently have $6.0 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $2.1 million.

Overall, Bankrate believes that, as of December 31, 2017, PUBLIC SERVICE H C EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial resilience, capital is valuable. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, PUBLIC SERVICE H C EMPLOYEES achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.

PUBLIC SERVICE H C EMPLOYEES had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

PUBLIC SERVICE H C EMPLOYEES scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-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 profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, PUBLIC SERVICE H C EMPLOYEES scored 2 out of a possible 30, coming in below the national average of 10.11.

PUBLIC SERVICE H C EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.