Safe and Sound

PLUMBERS & FITTERS LOCAL 675

Honolulu, HI
4
Star Rating
PLUMBERS & FITTERS LOCAL 675 is an NCUA-insured credit union founded in 1987 and currently based in Honolulu, HI. The credit union holds assets of $2.4 million, according to June 30, 2017, regulatory filings.

The credit union currently holds loans and leases worth $511,334. PLUMBERS & FITTERS LOCAL 675's 742 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PLUMBERS & FITTERS LOCAL 675 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial fortitude, capital is essential. When looking at safety and soundness, the more capital, the better.

PLUMBERS & FITTERS LOCAL 675 beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 16 out of a possible 30 points.

PLUMBERS & FITTERS LOCAL 675'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 impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, PLUMBERS & FITTERS LOCAL 675 scored 40 out of a possible 40 points, beating out the national average of 38.15 points.


Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

PLUMBERS & FITTERS LOCAL 675 scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.