Safe and Sound

HIWAY

SAINT PAUL, MN
4
Star Rating
SAINT PAUL, MN-based HIWAY is an NCUA-insured credit union founded in 1934. Regulatory filings show the credit union having assets of $1.10 billion, as of December 31, 2017.

Thanks to the work of 206 full-time employees, the credit union has amassed loans and leases worth $756.1 million. Its 70,336 members currently have $975.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HIWAY exhibited a good condition, earning 4 out of 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

HIWAY received a score of 12 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

HIWAY had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having lots of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking 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, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, HIWAY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, HIWAY scored 14 out of a possible 30, beating out the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.