Safe and Sound

WAILUKU

Kahului, HI
5
Star Rating
WAILUKU is an NCUA-insured credit union founded in 1954 and currently based in Kahului, HI. As of June 30, 2017, the credit union held assets of $51.3 million.

Members have $32.7 million on deposit tended by 11 full-time employees. With that footprint, the credit union has amassed loans and leases worth $32.7 million. Its 4,416 members currently have $42.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WAILUKU exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a buffer against losses and provides protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

WAILUKU did better than the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, scoring 22 out of a possible 30 points.

WAILUKU appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 15.00 percent in our test, better than 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 past-due mortgages.

Having lots of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing 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, resulting in reduced earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 3.00 percent of WAILUKU's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

WAILUKU scored 14 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.31.

One sign that WAILUKU is beating its peers in this area was its earnings ratio of 7.00 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.