Safe and Sound

HONOLULU

Honolulu, HI
4
Star Rating
HONOLULU is an NCUA-insured credit union founded in 1936 and currently headquartered in Honolulu, HI. As of June 30, 2017, the credit union had assets of $260.0 million.

Thanks to the work of 40 full-time employees, the credit union currently holds loans and leases worth $142.2 million. HONOLULU's 15,597 members currently have $230.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HONOLULU 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 major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

HONOLULU received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

HONOLULU appears to be weaker than its peers in this area, with a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

A below-average ratio of problem assets of 5.00 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 affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

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

One indication that the credit union is outperforming 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.