Asset Quality Score
Bankrate uses this test to determine the effect of troubled assets, such as past-due loans, 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. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, BRIGHTSTAR scored 40 out of a possible 40 points, above the national average of 38.15 points.
A below-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.