Safe and Sound

PEARL HAWAII

WAIPAHU, HI
4
Star Rating
Founded in 1937, PEARL HAWAII is an NCUA-insured credit union based in WAIPAHU, HI. As of June 30, 2017, the credit union held assets of $348.7 million.

With 63 full-time employees, the credit union has amassed loans and leases worth $141.1 million. Its 24,017 members currently have $315.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PEARL HAWAII exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the higher the capital, the better.

PEARL HAWAII scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

PEARL HAWAII appears to be weaker than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a future failure.

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

PEARL HAWAII's ratio of problem assets was 2.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

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

One indication that PEARL HAWAII is running ahead of its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.