Safe and Sound

SCHOFIELD

WAHIAWA, HI
4
Star Rating
SCHOFIELD is an NCUA-insured credit union founded in 1951 and currently based in WAHIAWA, HI. The credit union holds $33.3 million in assets, according to June 30, 2017, regulatory filings.

Members have $14.7 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $14.7 million. Its 2,262 members currently have $27.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SCHOFIELD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members during periods of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, SCHOFIELD achieved a score of 24 out of a possible 30 points, beating out the national average of 15.26.

SCHOFIELD's capitalization ratio of 17.00 percent in our test was better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets may eventually be required 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 interest for the credit union, diminishing earnings and increasing the risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 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 has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

SCHOFIELD scored 4 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.31.

SCHOFIELD had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting 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.