Asset Quality Score
In this test, Bankrate tries to determine the impact 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.
Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. 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.
ELM RIVER scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.
Troubled assets made up 1.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.