Safe and Sound

HAWAII COUNTY EMPLOYEES

Hilo, HI
5
Star Rating
HAWAII COUNTY EMPLOYEES is a Hilo, HI-based, NCUA-insured credit union started in 1936. The credit union holds $92.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 15 full-time employees, the credit union currently holds loans and leases worth $28.6 million. Its 6,053 members currently have $77.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAWAII COUNTY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's 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 a key measurement of a credit union's financial resilience. It works as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

HAWAII COUNTY EMPLOYEES exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

HAWAII COUNTY EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb 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 money, resulting in depressed earnings and potentially more risk of a failure in the future.

HAWAII COUNTY EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

A below-average ratio of problem assets of 0.00 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 buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, HAWAII COUNTY EMPLOYEES scored 10 out of a possible 30, failing to reach the national average of 10.11.

One indication that HAWAII COUNTY EMPLOYEES is outperforming 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.