A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.
KAUAI COMMUNITY did above-average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
The credit union had an earnings ratio of 8.00 percent in our test, higher than the average for all credit unions, a sign that it's beating its peers in this area.