Safe and Sound

PLUMBERS & FITTERS LOCAL 675

Honolulu, HI
4
Star Rating
Honolulu, HI-based PLUMBERS & FITTERS LOCAL 675 is an NCUA-insured credit union started in 1987. Regulatory filings show the credit union having assets of $2.5 million, as of December 31, 2017.

The credit union currently holds loans and leases worth $523,915. Its 763 members currently have $2.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PLUMBERS & FITTERS LOCAL 675 exhibited a good condition, earning 4 out of 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, PLUMBERS & FITTERS LOCAL 675 racked up 16 out of a possible 30 points, better than the national average of 15.65.

PLUMBERS & FITTERS LOCAL 675 had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, decreasing its buffer 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 future failure.

PLUMBERS & FITTERS LOCAL 675 scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

PLUMBERS & FITTERS LOCAL 675 did below-average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One sign that PLUMBERS & FITTERS LOCAL 675 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.