Safe and Sound

UNIVERSITY OF HAWAII

Honolulu, HI
4
Star Rating
UNIVERSITY OF HAWAII is an NCUA-insured credit union started in 1955 and currently headquartered in Honolulu, HI. As of June 30, 2017, the credit union had assets of $606.6 million.

With 67 full-time employees, the credit union holds loans and leases worth $179.0 million. UNIVERSITY OF HAWAII's 28,688 members currently have $534.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIVERSITY OF HAWAII exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade 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 affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

UNIVERSITY OF HAWAII finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 14 out of a possible 30 points.

UNIVERSITY OF HAWAII had a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate 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 kinds of assets may eventually have to use capital to absorb losses, shrinking its equity buffer. 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, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, UNIVERSITY OF HAWAII scored 36 out of a possible 40 points, lower than the national average of 38.15 points.

Troubled assets made up 9.00 percent of UNIVERSITY OF HAWAII's total assets in our test, greater than the national average and a potential cause for concern.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

UNIVERSITY OF HAWAII scored 16 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, above 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.