Safe and Sound

ALOHA PACIFIC

HONOLULU, HI
4
Star Rating
ALOHA PACIFIC is an HONOLULU, HI-based, NCUA-insured credit union that opened its doors in 1936. As of June 30, 2017, the credit union had assets of $802.9 million.

With 145 full-time employees, the credit union has amassed loans and leases worth $437.1 million. Its 47,401 members currently have $704.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALOHA PACIFIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, ALOHA PACIFIC received a score of 12 out of a possible 30 points, less than the national average of 15.26.

ALOHA PACIFIC's capitalization ratio of 11.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

ALOHA PACIFIC scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

Troubled assets made up 1.00 percent of the credit union's total assets 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 safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely 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, ALOHA PACIFIC scored 16 out of a possible 30, better than the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of 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.