Safe and Sound

MCCABE HAMILTON & RENNY

HONOLULU, HI
4
Star Rating
Started in 1967, MCCABE HAMILTON & RENNY is an NCUA-insured credit union headquartered in HONOLULU, HI. Regulatory filings show the credit union having assets of $6.9 million, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union has amassed loans and leases worth $3.3 million. Its 616 members currently have $6.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MCCABE HAMILTON & RENNY 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 major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It works as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

MCCABE HAMILTON & RENNY racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

MCCABE HAMILTON & RENNY'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

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets means a credit union could have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to 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, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

MCCABE HAMILTON & RENNY received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

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.