Safe and Sound

PEARL HAWAII

WAIPAHU, HI
4
Star Rating
PEARL HAWAII is an NCUA-insured credit union started in 1937 and currently headquartered in WAIPAHU, HI. The credit union has $344.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $139.9 million on deposit tended by 64 full-time employees. With that footprint, the credit union currently holds loans and leases worth $139.9 million. PEARL HAWAII's 23,996 members currently have $311.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEARL HAWAII 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 major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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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 bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, PEARL HAWAII received a score of 10 out of a possible 30 points, below the national average of 15.65.

PEARL HAWAII's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets means a credit union could have to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

PEARL HAWAII exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

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

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

PEARL HAWAII scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One sign that PEARL HAWAII is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.