Safe and Sound

KAHUKU

Kahuku, HI
1
Star Rating
KAHUKU is an NCUA-insured credit union started in 1937 and currently based in Kahuku, HI. As of June 30, 2017, the credit union had assets of $5.9 million.

The credit union currently holds loans and leases worth $4.4 million. Its 1,632 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KAHUKU exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It works as a bulwark against losses and affords protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

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

KAHUKU appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets means a credit union may have to use capital to cover losses, decreasing its equity cushion. 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 future failure.

KAHUKU fell below the national average of 38.15 on Bankrate's test of asset quality, racking up 16 out of a possible 40 points .

KAHUKU's ratio of troubled assets was 50.00 percent in our test, above the national average and something to keep an eye on.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

KAHUKU fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that KAHUKU is lagging behind its peers in this area was its earnings ratio of -23.00 percent in our test, worse than 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.