Safe and Sound

KAUAI GOVERNMENT EMPLOYEES

Lihue, HI
5
Star Rating
KAUAI GOVERNMENT EMPLOYEES is an NCUA-insured credit union started in 1947 and currently headquartered in Lihue, HI. As of June 30, 2017, the credit union had assets of $118.9 million.

Members have $86.2 million on deposit tended by 16 full-time employees. With that footprint, the credit union currently holds loans and leases worth $86.2 million. Its 7,259 members currently have $97.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KAUAI GOVERNMENT EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It acts as a buffer against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

KAUAI GOVERNMENT EMPLOYEES fell short of the national average of 15.26 on our test to measure capital adequacy, receiving a score of 10 out of a possible 30 points.

KAUAI GOVERNMENT EMPLOYEES had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

KAUAI GOVERNMENT EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.

Troubled assets made up 6.00 percent of KAUAI GOVERNMENT EMPLOYEES's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

KAUAI GOVERNMENT EMPLOYEES beat the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.

The credit union had an earnings ratio of 16.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.