Safe and Sound

MCBRYDE

Eleele, HI
5
Star Rating
MCBRYDE is an NCUA-insured credit union founded in 1938 and currently based in Eleele, HI. The credit union has $89.6 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 4 full-time employees, the credit union has amassed loans and leases worth $8.9 million. MCBRYDE's 3,538 members currently have $68.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MCBRYDE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It works as a buffer against losses and as protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

MCBRYDE beat out the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 30 out of a possible 30 points.

MCBRYDE's capitalization ratio of 24.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, reducing its equity cushion. 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, decreasing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, MCBRYDE scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A lower-than-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

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

The credit union had an earnings ratio of 2.00 percent in our test, higher than the average for all credit unions, a sign 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.