Asset Quality Score
In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having large numbers of these kinds of assets suggests a credit union could have to use capital to cover losses, cutting down on its equity buffer. 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 depressed earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, CBC scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.
A below-average ratio of problem assets of 6.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.