Safe and Sound

WEST OAHU COMMUNITY

Waianae, HI
5
Star Rating
WEST OAHU COMMUNITY is an NCUA-insured credit union founded in 1949 and currently headquartered in Waianae, HI. Regulatory filings show the credit union having assets of $39.5 million, as of June 30, 2017.

With 11 full-time employees, the credit union holds loans and leases worth $9.0 million. WEST OAHU COMMUNITY's 4,661 members currently have $29.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WEST OAHU COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, WEST OAHU COMMUNITY scored 18 out of a possible 30 points, exceeding the national average of 15.26.

WEST OAHU COMMUNITY'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

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 unpaid loans.

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, WEST OAHU COMMUNITY scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

WEST OAHU COMMUNITY did above-average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 7.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.