Safe and Sound

HONOLULU FIRE DEPARTMENT

Honolulu, HI
4
Star Rating
HONOLULU FIRE DEPARTMENT is an Honolulu, HI-based, NCUA-insured credit union founded in 1937. Regulatory filings show the credit union having assets of $71.3 million, as of June 30, 2017.

Thanks to the efforts of 9 full-time employees, the credit union has amassed loans and leases worth $30.5 million. HONOLULU FIRE DEPARTMENT's 5,528 members currently have $62.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HONOLULU FIRE DEPARTMENT exhibited a good condition, earning 4 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 American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is valuable. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

HONOLULU FIRE DEPARTMENT came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

HONOLULU FIRE DEPARTMENT's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the chances of a future failure.

HONOLULU FIRE DEPARTMENT scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.15.

Troubled assets made up 4.00 percent of the credit union's total assets in our test, below 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 safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

HONOLULU FIRE DEPARTMENT scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.31.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 2.00 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.