Safe and Sound

HONOLULU FIRE DEPARTMENT

Honolulu, HI
4
Star Rating
Founded in 1937, HONOLULU FIRE DEPARTMENT is an NCUA-insured credit union based in Honolulu, HI. As of December 31, 2017, the credit union held assets of $71.8 million.

With 9 full-time employees, the credit union currently holds loans and leases worth $32.9 million. HONOLULU FIRE DEPARTMENT's 5,733 members currently have $63.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HONOLULU FIRE DEPARTMENT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American 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 buffer against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

HONOLULU FIRE DEPARTMENT finished below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

HONOLULU FIRE DEPARTMENT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

HONOLULU FIRE DEPARTMENT scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

A below-average ratio of troubled 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 earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

HONOLULU FIRE DEPARTMENT scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

HONOLULU FIRE DEPARTMENT 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.