Asset Quality Score
Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these types of assets means a credit union could eventually have to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a future failure.
On Bankrate's test of asset quality, AMERICAN UNITED FAMILY OF CREDIT UN scored 36 out of a possible 40 points, less than the national average of 38.15 points.
Troubled assets made up 10.00 percent of AMERICAN UNITED FAMILY OF CREDIT UN's total assets in our test, exceeding the national average and something to keep an eye on.