Bank Name City, State FDIC Certificate Number

Transcription

1 Bank Name City, State FDIC Certificate Number

2 Bank Summary Report Mt. McKinley Bank Fairbanks, AK (FDIC Cert.#19525) Rated 5-Stars as of 2/16/2018 based on financial data as of 09/30/2017 Copyright Reproduction, in whole or in part, without permission is prohibited.

3 BauerFinancial Inc. P.O. Box Coral Gables, Florida * FAX customerservice@bauerfinancial.com This Summary Report was compiled from financial data as reported to federal regulators. Although the financial data obtained from these sources is consistently reliable, the accuracy and completeness of the data cannot be guaranteed by BauerFinancial Inc. Definitions: Stars Total Assets Average Tangible Assets Tier 1 Capital Leverage Capital Ratio CET 1 Ratio BauerFinancial's proprietary rating. (See below.) Anything of value owned by the bank. Total average assets less intangible assets. Net worth (also known as capital or equity) less intangible assets. Tier 1 Capital divided by tangible assets. (Minimum regulatory requirement is 4%.) Common Equity Tier 1 Capital divided by risk-weighted assets. (Minimum regulatory requirement is 4.5%.) Total Risk-based Ratio Total net worth divided by risk-weighted assets. (Minimum regulatory requirement is 8%.) Profit (Loss) Return on Assets (ROA) Return on Equity (ROE) Delinquent Loans Other Real Estate Owned (Repos) Nonperforming Assets % Tangible Assets Nonperforming Assets % Tier 1 Capital Profit or loss for the period noted. Annualized net income as a percent of average assets. Annualized net income as a percent of average equity. Loans past due 90 days or more plus nonaccrual loans. Real estate owned but not being used by the bank. Usually acquired via foreclosure. Delinquent loans and other real estate owned as a percent of tangible assets. Delinquent loans and other real estate owned as a percent of Tier 1 Capital. Star Ratings: BauerFinancial star ratings classify each institution based upon a complex formula factoring in current and historical data. The first level of evaluation is the capital level of the institution followed by other relevant data including, but not limited to: profitability, historical trends, loan delinquencies, repossessed assets, reserves, regulatory compliance, proposed regulations and asset quality. Negative trends are projected forward to compensate for the lag time in the data. BauerFinancial employs conservative measures when assigning these ratings and consequently our analysis may be lower than those supplied by other analysts or the institutions themselves. More than thirty years of experience has shown this to be a prudent course of action. As a general guideline, however, the following groupings were used: 5-Stars 4-Stars 3½-Stars 3-Stars Superior. These institutions are recommended by Bauer. Excellent. These institutions are recommended by Bauer. Good. Adequate. 2-Stars 1-Star Zero-Stars Start-up FDIC Problematic. Troubled. Our lowest rating. Institution is too new to rate. Institution has failed or is operating under FDIC conservatorship.

4 Bank Summary Report Bank 21 - Carrollton, MO (FDIC Cert.#8560) (660) Bank 21 was established in 1912 and has 5 branch(es). CRA Rating: Satisfactory Data as of: 06/30/ /31/ /31/ /30/ /30/2017 Bauer's Star Rating: 5-Stars 5-Stars 5-Stars 5-Stars 4-Stars Recommended for 116 consecutive quarters. Number of Employees Total Assets: $ $ $ $ $ Average Tangible Assets: $ $ $ $ $ Tier 1 Capital: $ $ $ $ $8.684 Leverage Capital Ratio: 8.80% 9.21% 8.74% 9.05% 7.57% CET 1 Ratio: 11.26% 11.96% 12.12% 12.06% 9.75% Total Risk-based Capital Ratio: 12.52% 13.21% 13.38% 13.31% 11.00% Current Quarter's Profit (Loss): $0.471 $0.422 $0.360 $0.400 $0.567 Year-to-date Profit (Loss): $0.893 $0.422 $1.634 $1.274 $0.874 Profit (Loss) Previous Calendar Year: $1.634 Profit (Loss) 2 Calendar Years Ago: $1.533 Return on Assets (annualized): (Tax equivalent for Sub S corporations.) 1.13% 0.90% 0.91% 0.97% 1.02% Return on Equity (annualized): (Tax equivalent for Sub S corporations.) 12.44% 9.77% 10.87% 11.69% 12.73% Delinquent Loans: $0.201 $0.096 $0.096 $0.000 $0.077 Other Real Estate Owned: $0.000 $0.000 $0.000 $0.000 $0.000 Nonperforming Assets % of Tangible Assets: 0.16% 0.08% 0.08% 0.00% 0.07% Nonperforming Assets % of Tier 1 Capital: 1.81% 0.84% 0.87% 0.00% 0.89% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial, Inc. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. Copyright Coral Gables, FL Reproduction, in whole or in part, without permission is prohibited.

5 Bank Summary Report Bank 21 - Carrollton, MO (FDIC Cert.#8560) (660) Bank 21 was established in 1912 and has 5 branch(es) Leverage Capital Ratio Min. for Adequately Capitalized is 4% Return on Assets (annualized) (Tax equivalent for Sub S corporations.) / / / / / / / / / /2017 This Bank Peer Group This Bank Peer Group Risk-based Capital Ratio Nonperforming Asset % of Tangible Assets / / / / /2017 This Bank Peer Group / / / / /2017 This Bank Peer Group Dollar amounts are in millions. For example, $12, represents $12 billion, 345 million, 678 thousand. Peer Groups: Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Banks with foreign and domestic offices Assets >= $3 billion Assets >= $1 billion and < $3 billion Assets >= $300 million and < $1 billion Assets >= $100 million and < $300 million Assets < $100 million Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial, Inc. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. Copyright Coral Gables, FL Reproduction, in whole or in part, without permission is prohibited.

6 Bank Analytical Report Bank 21 Carrollton, MO (FDIC Cert.#8560) Rated 5-Stars as of 11/9/2018 based on financial data as of 06/30/2018 Copyright Reproduction, in whole or in part, without permission is prohibited.

7 Introduction The financial data used to prepare this report, unless otherwise noted, was compiled from data reported to Federal Regulators. Although the information obtained from these sources is consistently reliable, the accuracy and completeness of this data cannot be guaranteed by BauerFinancial. In fact, an astute investor would agree, and experience has shown, that marginally performing institutions sometimes give themselves the benefit of the doubt when filing their reports. Our historical data helps us detect these variances. STAR RATING SYSTEM BauerFinancial's star ratings classify each institution based upon a complex formula factoring in current and historical data. The first step of evaluation is the capital level of the institution followed by other relevant data including, but not limited to: profitability, historical trends, loan delinquencies, repossessed assets, reserves, regulatory compliance, proposed regulations and asset quality. Negative trends are projected forward to compensate for the lag time in the data. BauerFinancial employs conservative measures when assigning these ratings and consequently our analysis may be lower than those supplied by other analysts or the institutions themselves. More than thirty years of experience has shown this to be a prudent course of action. As a general guideline, however, the following groupings were used: 5-Stars 4-Stars 3½-Stars 3-Stars 2-Stars 1-Star Zero-Stars S.U. FDIC Superior. These institutions are recommended by Bauer. Excellent. These institutions are recommended by Bauer. Good. Adequate. Problematic. Troubled. Our lowest rating. Institution is too new to rate. (Obsolete beginning with June 30, 2018 financial data.) Institution has failed or is operating under FDIC conservatorship. Peer Groups: Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Banks with foreign and domestic offices Assets >= $3 billion Assets >= $1 billion and < $3 billion Assets >= $300 million and < $1 billion Assets >= $100 million and < $300 million Assets < $100 million Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial, Inc. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. Copyright Coral Gables, FL Reproduction, in whole or in part, without permission is prohibited.

8 A. Financial Statements as of 06/30/2018 Bank Analytical Report Bank 21 - Carrollton, MO Rated 5-Stars based on financial data as of 06/30/2018 Balance Sheet: ($ millions) Assets: Cash & Due From Banks Securities & Fed Funds Sold Loans (net) Other Real Estate Owned Premises & Fixed Assets Investments in Subsidiaries Intangible Assets Other Assets Total Assets: Liabilities & Owner s Equity: Non-Interest Bearing Deposits Interest Bearing Deposits Fed Funds Purchased & Repos Subordinated Debt Other Borrowed Money Other Liabilities Total Liabilities: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Owner's Equity: Preferred Stock Common Stock & Surplus Retained Earnings Other Equity Total Equity Total Liabilities and Equity: Year-to-Date Income Statement ($ millions) Interest Income: Interest Expense: Net Interest Income: (plus) Non-Interest Income (plus) Gains (losses) Securities Transactions (minus) Non-Interest Expense (minus) Provisions (minus) Income Taxes (plus) Other Income (Expense) Net Income: $ $ $ $(0.059) $ $ $ $ $ $ $ $ $ $ $ $ Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

9 Bank Analytical Report Bank 21 - Carrollton, MO Rated 5-Stars based on financial data as of 06/30/2018 Year Established: Number of Branches: Telephone Number: (660) WebSite: B. CAPITAL ADEQUACY. In order to be classified as at least adequately capitalized, current regulatory capital requirements include a leverage capital ratio >= 4%, a Common Equity Tier 1 (CET1) Ratio >= 4.5%, a Tier 1 Risk- based Capital Ratio >= 6% AND a Total Risk-based Capital Ratio >= 8%. This Bank Peer Group Leverage Capital Ratio CET1 Ratio Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Regulatory Capital Classification 8.80% 11.63% 11.26% 16.52% 11.26% 16.54% 12.52% 17.64% Well-Capitalized C. REGULATORY STATUS. The Community Reinvestment Act (CRA) is intended to ensure institutions help meet the credit needs of the communities in which they operate. If available, the institution s CRA Rating is noted below. Similarly, if the institution s primary regulator has made public any current enforcement actions that could impact the safety and soundness of the institution, the regulator will be noted. If applicable, you may read the action by visiting the regulator s website (link below). (Disclaimer: Enforcement Action data is maintained by BauerFinancial based on media releases issued by the agencies; the accuracy and completeness cannot be guaranteed by ) Search Regulatory Enforcement Actions via these links: OCC FDIC FED CRA Rating: Satisfactory Supervisory Agreement: None D. ASSET QUALITY. The quality of an institution's assets is determined by two factors: what specifically is the asset and how does it relate to the entire portfolio. Asset quality can be the difference between survival and insolvency during periods of poor economic conditions. This Bank Peer Group Repossessed Assets/Net Worth: Nonaccrual Loans & Other Loans Past Due 90 Days or More/Net Worth: Nonperforming Assets/Net Worth + Reserves (Texas Ratio): 0.00% 2.23% 1.79% 5.67% 1.59% 7.26% The following five ratios refer to the nonperforming assets and reserves in the bank's portfolio: This Bank Peer Group Nonperforming Assets/Total Assets: Delinquent Loans/Total Loans: Repossessed Assets/Total Assets: Net Year-to-Date Chargeoffs/Total Loans: Loan Loss Reserve/Total Loans: 0.16% 0.91% 0.18% 0.97% 0.00% 0.26% 0.00% 0.04% 1.42% 1.30% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

10 6.51% 14.06% Bank Analytical Report Bank 21 - Carrollton, MO Rated 5-Stars based on financial data as of 06/30/2018 D. ASSET QUALITY, Continued. Generally speaking, the more risky loans in a bank s portfolio are construction, commercial real estate, and foreign loans. Local economic conditions cause regional variances. Individuals or businesses interested in obtaining a loan or line of credit should check that the bank is actively engaged in that type of lending. Undercapitalized banks may be required to limit their lending activity due to an effort to shrink their asset size (thus increasing their capital ratios). This Bank 6.95% 14.40% 8.67% 28.90% Peer Group 11.93% 6.31% 9.62% 47.09% 9.49% 1.51% 4.47% 30.11% Commercial & Industrial Consumer Commercial Real Estate Construction & Land Development Farmland 1-4 Family Residential Other Foreign Government Loans to executive officers, principal shareholders and their related parties (with or without collateral) are not unusual in the banking industry. However, excessive lending to insiders can cause problems if the loans are not subject to the same arm s length underwriting standards as similar loans to other customers. This Bank Peer Group Loans to Insiders/Total Loans: Loans to Insiders/Total Net Worth: 0.01% 1.74% 0.11% 10.19% Intangible assets are acquired by various transactions in which the purchase price exceeds the book value. For example, a bank may buy a branch of another bank for more than its book value; the premium paid would be an intangible asset to the purchaser known as goodwill. The leverage capital ratio on page 4 excludes most intangible assets. This Bank Peer Group Intangible Assets/Net Worth: 1.73% 2.51% Investments in unconsolidated subsidiaries and related companies can be a drain on a bank s net worth. If the book value of the subsidiary declines, so does that of the bank. This Bank Peer Group Investments in Subsidiaries/Net Worth: 0.00% 0.00% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

11 Bank Analytical Report Bank 21 - Carrollton, MO Rated 5-Stars based on financial data as of 06/30/2018 E. LIQUIDITY. Liquidity ratios measure the relationship between current assets and current liabilities; they are indicators of an institution's ability to meet current obligations. Higher ratios reflect a reliance on funding sources that may not be available in times of financial stress or adverse changes in market conditions. This Bank Peer Group Loans to Deposits: Non-core Funding Dependence: Brokered Deposits/Total Deposits: % 79.85% 8.72% 13.82% 0.00% 2.44% Deposits Acquired from use of Listing Services/Total Deposits: 0.68% 1.65% F. GROWTH. As a general rule, growth in a bank is considered normal and desirable. If the growth accelerates to a point where it becomes unmanageable, however, it can lead to a situation of capital inadequacy and/or unprofitability. Asset shrinkage could indicate a cutback in lending. This Bank Peer Group % Change in Assets (year): % Change in Equity (year): % Change in Deposits (year): % Change in Loans (year): 8.60% 4.05% 23.75% 3.08% 4.31% 10.95% 4.07% 6.63% G. PROFITABILITY. Standard measures of profitability are Return on Assets and Return on Equity which reflect the percentage of each that has been earned during the current period. The ratios facilitate comparisons between institutions and time periods, as the same dollar figure of net income may be good or bad, depending on the balance sheet of the institution. Current quarter s profit: Year-to-date profit: Profit for Previous Calendar Year: Profit for Calendar Year 2 Years Ago $0.471 $0.893 $1.634 $1.533 million million million million This Bank Peer Group Annualized Return on Assets: Annualized Return on Equity: 1.13% 1.15% 12.44% 9.91% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

12 Credit Union Name City, State NCUA Charter Number

13 Credit Union Summary Report Hawaii Community F.C.U. Kailua Kona, HI (NCUA Charter #1719) Rated 5-Stars as of 2/16/2018 based on financial data as of 09/30/2017 Copyright Reproduction, in whole or in part, without permission is prohibited.

14 BauerFinancial Inc. P.O. Box Coral Gables, Florida * FAX CustomerService@ This Summary Report was compiled from financial data as reported to federal regulators. Although the financial data obtained from these sources is consistently reliable, the accuracy and completeness of the data cannot be guaranteed by Star Rating Total Assets Capital Capital Ratio Profit (Loss) Return on Assets Delinquent Loans Other Real Estate Owned (Repos) Nonperforming Assets % Assets Nonperforming Assets % Capital Loans Charged-Off Year-to-date BauerFinancial's proprietary rating. (See below.) The size of the institution. Net worth (also known as equity). Capital divided by assets The dollar amount of net income (or loss) for the period noted. Annualized year-to-date profit or loss as a percent of average assets. Loans past due two months or more. Real estate acquired via foreclosure. Delinquent loans and other real estate owned as a percent of assets. Delinquent loans and other real estate owned as a percent of capital. The dollar amount of loans that have been written off as uncollectible during the calendar year to date. Star Ratings: The star rating classifies each credit union based upon a complex formula which factors in relevant data including, but not limited to: capital, historical trends, loan delinquencies, differences in the book and market values of the investment portfolio, losses, repossessed assets, reserves, and asset quality. Negative trends are projected forward to compensate for the lag time in the data. BauerFinancial employs conservative measures when assigning these ratings and consequently the ratings will often be lower than those supplied by other analysts or the institutions themselves. More than thirty years of experience has shown this to be a prudent course of action. As a general guideline, however, the following groupings were used: 5-Stars 4-Stars 3-Stars 2-Stars 1-Star Zero-Stars N.R. S.U. RSLVD Superior. These institutions are recommended by Bauer. Excellent. These institutions are recommended by Bauer. Adequate. Problematic. Troubled. Our lowest rating. Not Rated. Either the institution's shares are not federally insured or it has less than $1.5 million in assets. Start-up. Institution is too new to rate. Institution has been resolved or liquidated since the reporting date.

15 Credit Union Summary Report Hawaii Community F.C.U. - Kailua Kona, HI (NCUA Charter #1719) (800) Hawaii Community F.C.U. was established in 1936 and has 9 branch(es). Data as of: Bauer's Star Rating: 09/30/ /30/ /31/ /31/ /30/ Stars 5-Stars 5-Stars 5-Stars 5-Stars Recommended for 24 consecutive quarters. Number of Members 39,831 39,570 39,131 38,912 38,865 Number of Employees Total Assets: $ $ $ $ $ Capital: $ $ $ $ $ Capital Ratio: **Current Quarter's Profit (Loss): **Year-to-date Profit (Loss): **Profit (Loss) Previous Calendar Year **Profit (Loss) 2 Calendar Years Ago: **Return on Assets (annualized): 9.14% 8.93% 8.98% 9.24% 9.24% $0.907 $0.542 $0.458 $0.635 $0.601 $1.907 $1.000 $0.458 $2.041 $1.406 $2.041 $ % 0.42% 0.39% 0.44% 0.42% Delinquent Loans $1.232 $1.089 $1.598 $2.281 $2.959 Other Real Estate Owned $0.768 $0.871 $0.278 $0.431 $0.430 Nonperforming Assets % of Assets 0.40% 0.39% 0.38% 0.57% 0.72% Nonperforming Assets % of Capital 4.37% 4.37% 4.23% 6.18% 7.83% Loans charged-off (year-to-date) $0.205 $0.173 $0.100 $0.474 $0.252 ** Profitability data before transfers to reserves. Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

16 Credit Union Summary Report Hawaii Community F.C.U. - Kailua Kona, HI (NCUA Charter #1719) (800) Hawaii Community F.C.U. was established in 1936 and has 9 branch(es). Capital Ratio (%) Return on Assets (Annualized) / / / / / / / / / /2016 This Credit Union Peer Group This Credit Union Peer Group Nonperforming Assets % of Assets Peer Groups: Group 1 Group 2 Group 3 Assets >= $500 million Assets >= $100 million and < $500 million Assets >= 50 million and < $100 million Group 4 Assets >= $10 million and < $50 million Group 5 Assets >= $2 million and < $10 million Group 6 Assets < $2 million 09/ / / / /2016 This Credit Union Peer Group Dollar amounts are in millions. For example, $12, represents $12 billion, 345 million, 678 thousand. Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

17 Credit Union Analytical Report Hawaii Community F.C.U. Kailua Kona, HI (NCUA Charter #1719) (800) Rated 5-Stars as of 2/16/2018 based on financial data as of 09/30/2017 Copyright Reproduction, in whole or in part, without permission is prohibited.

18 DISCLAIMER The financial data used to prepare this report, unless otherwise noted, was obtained from reports filed with the National Credit Union Administration (NCUA), the regulatory agency for credit unions. Although the information obtained from this source is consistently reliable, the accuracy and completeness of this data cannot be guaranteed by BauerFinancial. In fact, an astute investor would agree, and experience has shown, that marginally performing institutions sometimes give themselves the benefit of the doubt when filing their reports. Our historical data helps us detect these variances. INTRODUCTION The financial data used to prepare this report, unless otherwise noted, was derived from data provided by the National Credit Union Administration (NCUA). The database contains data on federal and state credit unions derived from the Form #5300 report that each credit union submits quarterly. The data is then reviewed and classified by the NCUA prior to publication and released approximately three months after the end of the quarter. STAR RATING SYSTEM BauerFinancial's star ratings classify each institution based upon a complex formula factoring in current and historical data. The first step of evaulation is the capital level of the institution followed by other relevant data including, but not limited to: profitability, historical trends, loan delinquencies, repossessed assets, reserves, regulatory compliance, proposed regulations and asset quality. Negative trends are projected forward to compensate for the lag time in the data. BauerFinancial employs conservative measures when assigning these ratings and consequently our analysis may be lower than those supplied by other analysts or the institutions themselves. More than thirty years of experience has shown this to be a prudent course of action. As a general guideline, however, the following groupings were used: 5-Stars 4-Stars 3-Stars 2-Stars 1-Star Zero-Stars N.R. Start-up RSLVD Superior. These institutions are recommended by Bauer. Excellent. These institutions are recommended by Bauer. Adequate. Problematic. Troubled. Our lowest rating. Not Rated. The institution's shares are not federally insured or it's total assets are less than $1.5 million Start-up credit union. Institution is too new to rate. Institution has been resolved or liquidated since the reporting date. PEER GROUPS Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Assets >= $500 Million Assets >= $100 Million and < $500 Million Assets >= $50 Million and < $100 Million Assets >= $10 Million and < $50 Million Assets >= $2 Million and < $10 Million Assets < $2 Million Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.

19 A. Financial Statements as of 09/30/2017 Credit Union Analytical Report Hawaii Community F.C.U. - Kailua Kona, HI Rated 5-Stars based on financial data as of 09/30/2017 Balance Sheet: ($ millions) Assets: Cash & Due From Banks Investments Loans (net) Foreclosed Real Estate & Repossessions Fixed Assets Other Assets Total Assets: $ $ $ $ $ $ $ Liabilities & Equity: Borrowings Other Liabilities Shares and Deposits Total Shares and Liabilities: Reserves Retained Earnings Net Unrealized Gains/Losses Total Equity Total Liabilities and Equity: Regulatory Capital: $ $ $ $ $ $ $ $ $ $ Year-to-Date Income Statement ($ millions) Interest Income: Interest Expense: Net Interest Income: Provision for Loan Losses (plus) Non-Interest Income (minus) Non-Interest Expense Net Income Before Reserve Transfers Transfer to Reserves Net Income After Reserve Transfers: $ $ $ $ $ $ $ $ $ Number of Full Time Employees Number of Part Time Employees Number of Members ,831 Number of Branches 9 Year Established 1936 Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. 3

20 Credit Union Analytical Report Hawaii Community F.C.U. - Kailua Kona, HI Rated 5-Stars based on financial data as of 09/30/2017 B. ASSET CATEGORIES. Credit Unions were chartered to provide a savings vehicle for their affinity group members and to provide those members with consumer credit. Over the years, however, the loan types and investment vehicles of credit unions have become more sophisticated. The following sections compare the asset mix of this credit union with that of other credit unions its size. Credit Union Peer Group 1.0% 9.9% 8.4% 7.1% 7.7% 4.7% 8.3% 10.1% 13.9% 65.8% 43.1% 19.5% 0.4% Unsecured Loans New Auto Loans Used Auto Loans Leases First Mortgage R/E Loans Other R/E Loans Other Loans 7.14 Investments: Investment Type % of Total Investment Credit Union Affinity U.S. Government Obligations Federal Agency Securities Mutual Funds Corporate Central Credit Unions Banks & Thrifts Credit Unions Other Investments 0.45% 93.16% 0.00% 0.32% 0.00% 0.00% 6.07% 7.71% 74.45% 1.09% 0.66% 2.30% 0.40% 13.39% Total Investments: % % Interest Rates Net Loan Interest Income Interest Income from Investments Yield 3.90% 1.32% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. 4

21 Credit Union Analytical Report Hawaii Community F.C.U. - Kailua Kona, HI Rated 5-Stars based on financial data as of 09/30/2017 C. SHARES (DEPOSITS). As credit union services expanded they began providing full deposit services to their members. Most now offer checking privileges, certificates of deposit, retirement accounts and other specialized accounts, such as Christmas Club accounts. This section compares this credit union's deposit mix with that of other credit unions of its size. The average rate paid on the accounts over the last six months and the number of accounts is also provided. Shares Share Type Credit Union % of Shares Affinity % Share Certificate/CDs Share Drafts IRA/Keogh & Retirement Accounts Regular Shares Money Market Shares All Other Shares 7.21% 13.60% 6.18% 33.44% 33.42% 6.15% 19.16% 13.46% 7.02% 34.35% 25.12% 0.89% Total Shares: % % Credit Union Dividend Breakdown Share Certificate/CDs Share Drafts IRA/Keogh & Retirement Accounts Regular Shares Money Market Shares Rate 0.50% 0.00% 1.00% 0.15% 0.60% # of Accounts 1,636 22,287 1,374 38,388 1,543 Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. 5

22 Credit Union Analytical Report Hawaii Community F.C.U. - Kailua Kona, HI Rated 5-Stars based on financial data as of 09/30/2017 D. RATIO ANALYSIS. The ratio analysis provided in this section encompasses various ratios used by the National Credit Union Administration (NCUA) in evaluating the financial health of its member credit unions. The NCUA is the governing body for federally insured credit unions and is responsible for administrating the government insurance fund, which guarantees the deposits in insured credit unions. Credit Union % Affinity % Capital Adequacy Capital as a % of Assets Regulatory Capital Classification: Allowance for Loan Losses as a % of Total Loans Asset Quality Delinquent Loans as a % of Net Worth Delinquent Loans as a % of Total Gross Loans Net Charged-Off Loans YTD as a % of Total Loans Repossessed R/E as a % of Net Worth Repossessed R/E as a % of Total Assets Non-Earning Assets as a % of Total Assets Land & Building as a % of Total Assets Other Fixed Assets as a % of Total Assets Total Land, Building & Fixed Assets % of Total Assets 9.14% Well Capitalized 0.66% 2.69% 0.45% 0.10% 1.68% 0.15% 3.57% 2.54% 0.23% 2.77% 10.56% 0.92% 5.04% 0.75% 0.41% 0.49% 0.05% 3.63% 1.47% 0.35% 1.87% Liquidity Long Term Assets as a % of Total Assets Total Loans as a % of Total Shares 38.97% 61.04% 29.52% 86.21% Earnings (annualized) Net Income Before Resv. Tsf. as a % of Avg. Assets Net Income After Resv. Tsf. as a % of Avg. Assets Operating Expenses as a % of Average Assets Loan Servicing Expense as a % of Total Loans Office Occupancy & Operations Exp.% of Tot. Assets Office Expense as a % of # of Employees Employee Compensation & Benefits % of Tot. Assets Employee Compensation & Benefits to # of Employees 0.53% 0.53% 2.85% 0.56% 0.63% 2.75% 1.43% 0.06% 0.87% 0.85% 2.83% 0.28% 0.69% 3.73% 1.45% 0.08% Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden. 6