Safe and Sound

HAWAII COUNTY EMPLOYEES

Hilo, HI
5
Star Rating
HAWAII COUNTY EMPLOYEES is an NCUA-insured credit union started in 1936 and currently based in Hilo, HI. As of June 30, 2017, the credit union held assets of $92.2 million.

Members have $27.9 million on deposit tended by 15 full-time employees. With that footprint, the credit union has amassed loans and leases worth $27.9 million. HAWAII COUNTY EMPLOYEES's 6,064 members currently have $77.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAII COUNTY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It acts as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

HAWAII COUNTY EMPLOYEES scored above the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

HAWAII COUNTY EMPLOYEES had a capitalization ratio of 15.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

HAWAII COUNTY EMPLOYEES scored above the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

HAWAII COUNTY EMPLOYEES's ratio of problem assets was 1.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

HAWAII COUNTY EMPLOYEES scored 10 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

The credit union had an earnings ratio of 5.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.