Hoboken School Employees: Overview of the Credit Union

The credit union first came into existence in 1937 and has been operating for the last 85 years. Hoboken School Employees is based in the state of New Jersey and is also the 41st largest credit union operating in the state; this is calculated based on its total assets. Unlike banks, credit unions like Hoboken School Employees are not insured by the Federal Deposit Insurance Corporation (FDIC) but instead receive deposit insurance from the National Credit Union Administration (NCUA), which operates in a similar fashion to the FDIC. The company has a total of 1 branch and employs a total of 3 employees.

Who Can Join?

Individuals who fall into one of three categories are eligible to join the credit union (1) Hoboken Board of Education employees (2) Hoboken Elks Lodge #74 members and (3) Hoboken Parking Authority employees.

Overview of the Credit Union’s Assets and Liabilities

As previously indicated, the credit union currently has total assets of $66 million, which makes it larger than 56% of credit unions in the United States. Hoboken School Employees also has net loans outstanding to customers of $23 million and a deposit base of $51 million. In addition, the credit union has a loan to deposit ratio of 45%, which is lower than its peer group average of 55%. Generally speaking, a lower loan to deposit ratio is better as it implies that the credit union is funding more of its lending activities with deposits. Moving on to the credit union’s loan portfolio, it mainly consists of the following: mortgages and lines of credit make up 81% of the portfolio and there is a total of $19 million outstanding and auto loans comprises 5% of the loan book and there is a total of $1 million outstanding.

Contact and Other Helpful Information

  • Main Office Address: 522 Adams St, Hoboken, NJ 07030-2002
  • Website: http://www.hsefcu.coop
  • Phone: (201) 659-0126
  • Charter Number: 2155
  • Charter Year: 1937
  • Employees: 3
  • Routing Number: 251482859
  • Membership: On average, credit unions in New Jersey each have 6,674 members while across the United States the equivalent figure is 25,779. By comparison, Hoboken School Employees has total members of 1,704 which is significantly smaller than the average credit union in the state. Over the past three years, the credit union’s total base of members has declined by 13%.

Hoboken School Employees: Financial Overview

hoboken school employees-balance-sheet-metrics

Detailed above is a chart showing the progression of four important balance sheet items over the past year for Hoboken School Employees. Assets and total loans for the credit union have expanded by 7.5% and expanded by 1.1%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has declined by 1.1%. Lastly, the credit union’s deposits have grown by 50.7%. A credit union’s net worth is a good proxy for the value that a credit union has accrued over time. Based on the latest available information, Hoboken School Employees’s net worth stands at $15 million. This implies that the credit union has a net worth per member of $8,794 which is greater than the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

hoboken school employees-selected-performance-metrics

In the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how Hoboken School Employees compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Starting with the company’s return on assets, on this metric Hoboken School Employees is above the average credit union in its peer set and over the past year ROA has improved with a total change of 0.19%. Return on assets tells us how productive a company is being with its asset base. Moving on to the credit union’s delinquency rate, which tells us how much of a credit union’s loan book is delinquent, the credit union is below its peer group on this metric and compared with the prior year it has improved. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. Finally, the net worth ratio for the credit union is 22.6% which is well above its peer group average of 10.2%. This metric has declined on a year over year basis and stood at 23.6% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.

Conclusion

Ultimately, after considering all of the relevant factors we rate Hoboken School Employees 4.1 out of 5.0, which is exceptional. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.