Safe and Sound

WINDWARD COMMUNITY

KAILUA, HI
3
Star Rating
Founded in 1953, WINDWARD COMMUNITY is an NCUA-insured credit union based in KAILUA, HI. Regulatory filings show the credit union having $83.6 million in assets, as of December 31, 2017.

With 20 full-time employees, the credit union holds loans and leases worth $38.7 million. Its 8,223 members currently have $74.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WINDWARD COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is key. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, WINDWARD COMMUNITY received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

WINDWARD COMMUNITY's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, reducing 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

WINDWARD COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

WINDWARD COMMUNITY's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

WINDWARD COMMUNITY fell short of the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

WINDWARD COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.