Safe and Sound

KAMEHAMEHA

HONOLULU, HI
4
Star Rating
KAMEHAMEHA is an HONOLULU, HI-based, NCUA-insured credit union founded in 1957. The credit union holds $37.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $10.0 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $10.0 million. KAMEHAMEHA's 4,208 members currently have $32.5 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a key measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, KAMEHAMEHA racked up 16 out of a possible 30 points, beating out the national average of 15.65.

KAMEHAMEHA's capitalization ratio of 16.00 percent in our test puts it right in line with 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 mortgages.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, cutting down on its cushion 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, reducing earnings and increasing the risk of a failure in the future.

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

KAMEHAMEHA's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, KAMEHAMEHA scored 2 out of a possible 30, falling short of the national average of 10.11.

One sign that KAMEHAMEHA is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.