Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a failure in the future.
On Bankrate's asset quality test, A. E. A. scored 24 out of a possible 40 points, less than the national average of 38.15 points.
An above-average ratio of problem assets of 35.00 percent in our test was a potential cause for concern for A. E. A..