Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these kinds of assets means a credit union may have 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 no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.
HONOR scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .
Troubled assets made up 4.00 percent of HONOR's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.