Safe and Sound

HAWAII NATIONAL GUARD

HONOLULU, HI
3
Star Rating
HAWAII NATIONAL GUARD is an NCUA-insured credit union founded in 1959 and currently headquartered in HONOLULU, HI. Regulatory filings show the credit union having assets of $19.2 million, as of June 30, 2017.

Thanks to the work of 3 full-time employees, the credit union has amassed loans and leases worth $4.1 million. Its 1,898 members currently have $17.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAII NATIONAL GUARD exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial fortitude. It works as a bulwark against losses and as protection for members during periods of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

HAWAII NATIONAL GUARD fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 8 out of a possible 30 points.

HAWAII NATIONAL GUARD had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets suggests a credit union may have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are 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.

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

HAWAII NATIONAL GUARD's ratio of problem assets was 1.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, HAWAII NATIONAL GUARD scored 0 out of a possible 30, below the national average of 10.31.

HAWAII NATIONAL GUARD had an earnings ratio of -52.00 percent in our test, worse than the average for all credit unions, suggesting that it's lagging behind 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.