Safe and Sound

HAMAKUA COAST COMMUNITY

Pepeekeo, HI
4
Star Rating
Pepeekeo, HI-based HAMAKUA COAST COMMUNITY is an NCUA-insured credit union started in 1937. As of December 31, 2017, the credit union held assets of $15.5 million.

Members have $6.4 million on deposit tended by 6 full-time employees. With that footprint, the credit union holds loans and leases worth $6.4 million. Its 1,644 members currently have $12.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAMAKUA COAST COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of economic trouble for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, more capital is better.

HAMAKUA COAST COMMUNITY beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 24 out of a possible 30 points.

HAMAKUA COAST COMMUNITY had a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, shrinking its cushion 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, pushing down earnings and elevating the chances of a failure in the future.

HAMAKUA COAST COMMUNITY scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

HAMAKUA COAST COMMUNITY did below-average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that HAMAKUA COAST COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 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.