Safe and Sound

KUAKINI MEDICAL AND DENTAL

Honolulu, HI
4
Star Rating
Honolulu, HI-based KUAKINI MEDICAL AND DENTAL is an NCUA-insured credit union founded in 1957. The credit union holds assets of $42.6 million, according to June 30, 2017, regulatory filings.

Members have $6.7 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.7 million. Its 2,515 members currently have $37.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KUAKINI MEDICAL AND DENTAL 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

KUAKINI MEDICAL AND DENTAL did better than the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, receiving a score of 16 out of a possible 30 points.

KUAKINI MEDICAL AND DENTAL's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

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

KUAKINI MEDICAL AND DENTAL's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, KUAKINI MEDICAL AND DENTAL scored 6 out of a possible 30, below the national average of 10.31.

One sign that KUAKINI MEDICAL AND DENTAL is outperforming its peers in this area was its earnings ratio of 3.00 percent in our test, better 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.