Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, GARDEN ISLAND scored 40 out of a possible 40 points, beating the national average of 38.15 points.
A below-average ratio of problem assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.