Safe and Sound

HUGHES

TUCSON, AZ
4
Star Rating
HUGHES is an NCUA-insured credit union started in 1951 and currently headquartered in TUCSON, AZ. The credit union has assets of $1.09 billion, according to June 30, 2017, regulatory filings.

Thanks to the work of 221 full-time employees, the credit union holds loans and leases worth $910.8 million. Its 112,295 members currently have $979.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HUGHES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

HUGHES received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

HUGHES had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, HUGHES scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

A below-average ratio of troubled 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 has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

HUGHES received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 9.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.