Safe and Sound

SOUTH JERSEY

Deptford, NJ
3
Star Rating
SOUTH JERSEY is a Deptford, NJ-based, NCUA-insured credit union founded in 1940. The credit union has assets of $352.3 million, according to December 31, 2017, regulatory filings.

With 138 full-time employees, the credit union currently holds loans and leases worth $210.2 million. SOUTH JERSEY's 47,876 members currently have $310.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH JERSEY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. 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 provides protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, the more capital, the better.

SOUTH JERSEY came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 8 out of a possible 30 points.

SOUTH JERSEY's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended 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 a large number of these kinds of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion of equity. 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.

SOUTH JERSEY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

SOUTH JERSEY underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.