Safe and Sound

HAMAKUA COAST COMMUNITY

Pepeekeo, HI
5
Star Rating
HAMAKUA COAST COMMUNITY is a Pepeekeo, HI-based, NCUA-insured credit union that opened its doors in 1937. Regulatory filings show the credit union having assets of $15.0 million, as of June 30, 2017.

Members have $6.3 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.3 million. Its 1,637 members currently have $12.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAMAKUA COAST COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

HAMAKUA COAST COMMUNITY achieved a score of 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.26.

HAMAKUA COAST COMMUNITY had a capitalization ratio of 17.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, HAMAKUA COAST COMMUNITY scored 40 out of a possible 40 points, above the national average of 38.15 points.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

HAMAKUA COAST COMMUNITY received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 3.00 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.