Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with large numbers of these kinds of assets could eventually be required to use capital to cover losses, shrinking its equity cushion. 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 future failure.
HANSCOM did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .
HANSCOM's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.