Safe and Sound

HAWAII SCHOOLS

Honolulu, HI
4
Star Rating
HAWAII SCHOOLS is an NCUA-insured credit union founded in 1936 and currently based in Honolulu, HI. Regulatory filings show the credit union having assets of $67.2 million, as of June 30, 2017.

Thanks to the efforts of 9 full-time employees, the credit union holds loans and leases worth $21.6 million. HAWAII SCHOOLS's 4,286 members currently have $58.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAII SCHOOLS exhibited a good condition, earning 4 out of 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 American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, HAWAII SCHOOLS received a score of 14 out of a possible 30 points, less than the national average of 15.26.

HAWAII SCHOOLS's capitalization ratio of 11.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, HAWAII SCHOOLS scored 4 out of a possible 30, falling short of the national average of 10.31.

HAWAII SCHOOLS had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with 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.