Asset Quality Score
Bankrate uses this test to estimate the effect of problem 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 extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, COMMONWEALTH CENTRAL scored 40 out of a possible 40 points, above the national average of 38.15 points.
A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.