Safe and Sound

HAWAII FIRST

Kamuela, HI
5
Star Rating
Founded in 1956, HAWAII FIRST is an NCUA-insured credit union headquartered in Kamuela, HI. The credit union has $40.3 million in assets, according to June 30, 2017, regulatory filings.

With 21 full-time employees, the credit union holds loans and leases worth $31.0 million. HAWAII FIRST's 7,951 members currently have $28.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAII FIRST exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When looking at safety and soundness, more capital is better.

HAWAII FIRST fell below the national average of 15.26 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

HAWAII FIRST's capitalization ratio of 10.00 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 determine the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets means a credit union may have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

HAWAII FIRST scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.15.

Troubled assets made up 8.00 percent of HAWAII FIRST's total assets in our test, greater than the national average and a potential area of concern.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, HAWAII FIRST scored 26 out of a possible 30, beating the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 16.00 percent in our test, above 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.