Safe and Sound

MAUI TEACHERS

Wailuku, HI
4
Star Rating
Wailuku, HI-based MAUI TEACHERS is an NCUA-insured credit union founded in 1936. The credit union holds assets of $32.9 million, according to June 30, 2017, regulatory filings.

Members have $6.1 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $6.1 million. MAUI TEACHERS's 1,729 members currently have $28.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MAUI TEACHERS 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 important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is important. When it comes to safety and soundness, the more capital, the better.

MAUI TEACHERS did better than the national average of 15.26 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

MAUI TEACHERS'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 effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

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

Troubled assets made up 1.00 percent of MAUI TEACHERS's total assets in our test, beneath 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 may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

MAUI TEACHERS did below-average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 5.00 percent in our test, higher 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.