Safe and Sound

WEST MAUI COMMUNITY

Lahaina, HI
5
Star Rating
WEST MAUI COMMUNITY is a Lahaina, HI-based, NCUA-insured credit union that opened its doors in 1938. Regulatory filings show the credit union having $38.0 million in assets, as of June 30, 2017.

With 5 full-time employees, the credit union currently holds loans and leases worth $7.8 million. WEST MAUI COMMUNITY's 3,114 members currently have $30.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WEST MAUI COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is essential. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the higher the capital, the better.

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

WEST MAUI COMMUNITY had a capitalization ratio of 21.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.

WEST MAUI COMMUNITY exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than 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 use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

WEST MAUI COMMUNITY scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.31.

One indication that WEST MAUI COMMUNITY is lagging behind its peers in this area was its earnings ratio of -1.00 percent in our test, below 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.