Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with a large number of these types of assets may eventually be forced to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
CHAFFEY did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .
CHAFFEY's ratio of troubled assets was 2.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.