Safe and Sound

HOTEL AND TRAVEL INDUSTRY

Honolulu, HI
3
Star Rating
Honolulu, HI-based HOTEL AND TRAVEL INDUSTRY is an NCUA-insured credit union founded in 1954. As of June 30, 2017, the credit union had assets of $33.5 million.

Members have $15.6 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $15.6 million. HOTEL AND TRAVEL INDUSTRY's 5,373 members currently have $30.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HOTEL AND TRAVEL INDUSTRY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

HOTEL AND TRAVEL INDUSTRY received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.26.

HOTEL AND TRAVEL INDUSTRY appears to be weaker than its peers in this area, with a capitalization ratio of 7.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to try to understand 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 loans.

Having a large number of these types of assets may eventually require a credit union to use capital to cover losses, shrinking its buffer 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.

HOTEL AND TRAVEL INDUSTRY scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.15.

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

HOTEL AND TRAVEL INDUSTRY scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

HOTEL AND TRAVEL INDUSTRY had an earnings ratio of 2.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.