Safe and Sound

HAWAIIAN ELECTRIC EMPLOYEES

Honolulu, HI
4
Star Rating
HAWAIIAN ELECTRIC EMPLOYEES is an Honolulu, HI-based, NCUA-insured credit union dating back to 1937. As of June 30, 2017, the credit union had assets of $36.7 million.

With 4 full-time employees, the credit union holds loans and leases worth $10.8 million. HAWAIIAN ELECTRIC EMPLOYEES's 2,019 members currently have $31.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAIIAN ELECTRIC EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that an institution's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

HAWAIIAN ELECTRIC EMPLOYEES scored 22 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

HAWAIIAN ELECTRIC EMPLOYEES had a capitalization ratio of 15.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having lots of these kinds of assets suggests a credit union could have 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 no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, HAWAIIAN ELECTRIC EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.15 points.

A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects 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 trouble. Conversely, losses take away from a credit union's ability to do those things.

HAWAIIAN ELECTRIC EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

HAWAIIAN ELECTRIC EMPLOYEES had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck 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.