Safe and Sound

HOTEL AND TRAVEL INDUSTRY

Honolulu, HI
3
Star Rating
HOTEL AND TRAVEL INDUSTRY is an Honolulu, HI-based, NCUA-insured credit union started in 1954. The credit union holds $33.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 10 full-time employees, the credit union holds loans and leases worth $15.2 million. HOTEL AND TRAVEL INDUSTRY's 5,372 members currently have $31.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOTEL AND TRAVEL INDUSTRY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the more capital, the better.

HOTEL AND TRAVEL INDUSTRY received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

HOTEL AND TRAVEL INDUSTRY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, reducing its equity cushion. 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.

On Bankrate's test of asset quality, HOTEL AND TRAVEL INDUSTRY scored 40 out of a possible 40 points, above 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 profitability 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 address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, HOTEL AND TRAVEL INDUSTRY scored 6 out of a possible 30, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.