Safe and Sound

LEAHI

HONOLULU, HI
1
Star Rating
LEAHI is an NCUA-insured credit union founded in 1956 and currently based in HONOLULU, HI. Regulatory filings show the credit union having assets of $1.8 million, as of June 30, 2017.

LEAHI's 454 members currently have $1.8 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.2 million.

Overall, Bankrate believes that, as of June 30, 2017, LEAHI exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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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 provides protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is better.

LEAHI received a score of 0 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.26.

LEAHI's capitalization ratio of 2.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having lots of these types of assets may eventually force a credit union to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

LEAHI finished below the national average of 38.15 on Bankrate's test of asset quality, racking up 8 out of a possible 40 points .

An above-average ratio of problem assets of 63.00 percent in our test was a potential area of concern for the credit union.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, LEAHI scored 0 out of a possible 30, falling short of the national average of 10.31.

One sign that LEAHI is underperforming its peers in this area was its earnings ratio of -557.00 percent in our test, less 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.