Safe and Sound

MAUI

KAHULUI, HI
5
Star Rating
Started in 1938, MAUI is an NCUA-insured credit union headquartered in KAHULUI, HI. The credit union has assets of $100.9 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 15 full-time employees, the credit union has amassed loans and leases worth $34.6 million. MAUI's 7,072 members currently have $84.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MAUI exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When looking at safety and soundness, the more capital, the better.

MAUI scored above the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 22 out of a possible 30 points.

MAUI's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, shrinking 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, resulting in lower earnings and potentially more risk of a failure in the future.

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

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

MAUI fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One indication that MAUI 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.