Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its equity cushion. 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 lower earnings and potentially more risk of a failure in the future.
DIRECTORS CHOICE came in below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .
DIRECTORS CHOICE's ratio of troubled assets was 10.00 percent in our test, above the national average and something to watch.