Safe and Sound

SOUTH JERSEY GAS EMPLOYEES

Folsom, NJ
5
Star Rating
SOUTH JERSEY GAS EMPLOYEES is an NCUA-insured credit union founded in 1954 and currently based in Folsom, NJ. Regulatory filings show the credit union having $10.2 million in assets, as of December 31, 2017.

The credit union holds loans and leases worth $2.5 million. Its 926 members currently have $7.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH JERSEY GAS 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?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

SOUTH JERSEY GAS EMPLOYEES beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 30 out of a possible 30 points.

SOUTH JERSEY GAS EMPLOYEES's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting 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 reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having large numbers of these types of assets suggests a credit union may eventually have to use capital to cover losses, cutting down on 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 money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SOUTH JERSEY GAS EMPLOYEES scored 40 out of a possible 40 points, exceeding 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, SOUTH JERSEY GAS EMPLOYEES scored 6 out of a possible 30, lower than the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.