Asset Quality Score
In this test, Bankrate tries 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.
A credit union with lots of these kinds of assets may eventually be required to use capital to cover losses, cutting down on 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 chances of a failure in the future.
GULF COAST EDUCATORS scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.
A lower-than-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.