Safe and Sound

KAMEHAMEHA

HONOLULU, HI
4
Star Rating
KAMEHAMEHA is an HONOLULU, HI-based, NCUA-insured credit union dating back to 1957. As of June 30, 2017, the credit union had assets of $37.4 million.

Members have $10.2 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $10.2 million. KAMEHAMEHA's 4,434 members currently have $32.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KAMEHAMEHA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, KAMEHAMEHA racked up 16 out of a possible 30 points, beating out the national average of 15.26.

KAMEHAMEHA had a capitalization ratio of 13.00 percent in our test, identical the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

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

A lower-than-average ratio of troubled assets of 1.00 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 earning money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, KAMEHAMEHA scored 0 out of a possible 30, lower than the national average of 10.31.

KAMEHAMEHA had an earnings ratio of -1.00 percent in our test, worse than the average for all credit unions, an indication that it's running behind 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.