Asset Quality Score
In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with a large number of these types of assets may eventually be required to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a future failure.
On Bankrate's test of asset quality, A+ scored 40 out of a possible 40 points, better than the national average of 38.15 points.
A+'s ratio of problem assets was 4.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.