Safe and Sound

ST. ANDREW KIM

Palisades Park, NJ
4
Star Rating
ST. ANDREW KIM is a Palisades Park, NJ-based, NCUA-insured credit union started in 1984. The credit union has assets of $1.9 million, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $657,558. ST. ANDREW KIM's 520 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. ANDREW KIM exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

ST. ANDREW KIM scored 20 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.

ST. ANDREW KIM appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to absorb losses, reducing its equity buffer. 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 reduced earnings and potentially more risk of a failure in the future.

ST. ANDREW KIM scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. 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. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, ST. ANDREW KIM scored 2 out of a possible 30, coming in below the national average of 10.11.

One indication that ST. ANDREW KIM is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.