Safe and Sound

H M S A EMPLOYEES

Honolulu, HI
4
Star Rating
H M S A EMPLOYEES is an Honolulu, HI-based, NCUA-insured credit union founded in 1961. Regulatory filings show the credit union having assets of $70.9 million, as of June 30, 2017.

Thanks to the efforts of 7 full-time employees, the credit union holds loans and leases worth $12.4 million. H M S A EMPLOYEES's 3,578 members currently have $62.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, H M S A EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of financial trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

H M S A EMPLOYEES finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 14 out of a possible 30 points.

H M S A EMPLOYEES had a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

H M S A EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

The credit union's ratio of troubled assets was 2.00 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 safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

H M S A EMPLOYEES outperformed the average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 5.00 percent in our test, higher 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.