Safe and Sound

SAKER SHOP RITE

Freehold, NJ
5
Star Rating
SAKER SHOP RITE is an NCUA-insured credit union started in 1962 and currently based in HOLMDEL, NJ. Regulatory filings show the credit union having assets of $7.2 million, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $1.8 million. SAKER SHOP RITE's 4,185 members currently have $5.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAKER SHOP RITE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, SAKER SHOP RITE racked up 30 out of a possible 30 points, exceeding the national average of 15.65.

SAKER SHOP RITE had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets could eventually have to use capital to cover losses, diminishing its cushion of equity. 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, reducing earnings and increasing the risk of a future failure.

SAKER SHOP RITE scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

SAKER SHOP RITE received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that SAKER SHOP RITE is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.