Safe and Sound

HAWAII CENTRAL

Honolulu, HI
3
Star Rating
HAWAII CENTRAL is an NCUA-insured credit union founded in 1937 and currently headquartered in Honolulu, HI. The credit union holds assets of $263.0 million, according to June 30, 2017, regulatory filings.

Members have $136.9 million on deposit tended by 44 full-time employees. With that footprint, the credit union holds loans and leases worth $136.9 million. HAWAII CENTRAL's 19,507 members currently have $234.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAII CENTRAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, HAWAII CENTRAL received a score of 8 out of a possible 30 points, below the national average of 15.26.

HAWAII CENTRAL's capitalization ratio of 9.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, HAWAII CENTRAL scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

The credit union's ratio of troubled assets was 7.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

HAWAII CENTRAL fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

HAWAII CENTRAL had an earnings ratio of 2.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.