Safe and Sound

MCCABE HAMILTON & RENNY

HONOLULU, HI
4
Star Rating
HONOLULU, HI-based MCCABE HAMILTON & RENNY is an NCUA-insured credit union founded in 1967. As of June 30, 2017, the credit union held assets of $6.9 million.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $3.3 million. MCCABE HAMILTON & RENNY's 600 members currently have $6.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MCCABE HAMILTON & RENNY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It works as a buffer against losses and affords protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

MCCABE HAMILTON & RENNY scored 16 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

MCCABE HAMILTON & RENNY had a capitalization ratio of 13.00 percent in our test, identical the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

This test's purpose is to try to understand 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 large numbers of these types of assets may eventually be required to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be 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 test of asset quality, MCCABE HAMILTON & RENNY scored 40 out of a possible 40 points, above the national average of 38.15 points.

A below-average ratio of problem assets of 5.00 percent in our test was 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, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

MCCABE HAMILTON & RENNY scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

MCCABE HAMILTON & RENNY had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with 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.