Safe and Sound

HAWAII STATE

HONOLULU, HI
4
Star Rating
Founded in 1936, HAWAII STATE is an NCUA-insured credit union headquartered in Honolulu, HI. The credit union has $1.54 billion in assets, according to December 31, 2017, regulatory filings.

Members have $855.5 million on deposit tended by 293 full-time employees. With that footprint, the credit union holds loans and leases worth $855.5 million. HAWAII STATE's 100,370 members currently have $1.35 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAWAII STATE 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 major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is important. When it comes to safety and soundness, the higher the capital, the better.

HAWAII STATE fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

HAWAII STATE's capitalization ratio of 12.00 percent in our test was worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. 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.

HAWAII STATE beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of HAWAII STATE's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, HAWAII STATE scored 6 out of a possible 30, falling short of the national average of 10.11.

HAWAII STATE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.