Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled 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 absorb losses, decreasing 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 money, resulting in lower earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, ALLSOUTH scored 40 out of a possible 40 points, beating out the national average of 38.15 points.
ALLSOUTH's ratio of troubled assets was 1.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.