Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer 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, CONNECTICUT 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 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.