Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these kinds of assets may eventually force a credit union to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.
On Bankrate's test of asset quality, FAMILIES AND SCHOOLS TOGETHER scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.
Troubled assets made up 5.00 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.