Safe and Sound

TEANECK

TEANECK, NJ
4
Star Rating
TEANECK is an NCUA-insured credit union founded in 1937 and currently based in TEANECK, NJ. As of December 31, 2017, the credit union held assets of $12.4 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $2.1 million. TEANECK's 1,029 members currently have $10.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TEANECK exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, more capital is better.

TEANECK exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 20 out of a possible 30 points.

TEANECK's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, an indication that it's stronger 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 problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, shrinking its buffer 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, decreasing earnings and elevating the risk of a future failure.

TEANECK exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

TEANECK's ratio of troubled assets was 0.00 percent in our test, less than the national average and 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, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

TEANECK fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that TEANECK is outperforming 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.