Safe and Sound

WINDWARD COMMUNITY

KAILUA, HI
4
Star Rating
KAILUA, HI-based WINDWARD COMMUNITY is an NCUA-insured credit union started in 1953. The credit union has assets of $87.0 million, according to June 30, 2017, regulatory filings.

Members have $37.2 million on deposit tended by 21 full-time employees. With that footprint, the credit union currently holds loans and leases worth $37.2 million. Its 8,456 members currently have $79.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WINDWARD COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

WINDWARD COMMUNITY received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.26.

WINDWARD COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets means a credit union could eventually have to use capital to cover losses, diminishing 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 money, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of problem assets of 6.00 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 affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

WINDWARD COMMUNITY scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.