Asset Quality Score
In this test, Bankrate tries to determine 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 lots of these kinds of assets could eventually have to use capital to absorb losses, shrinking 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, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, KEKAHA scored 40 out of a possible 40 points, better than the national average of 38.15 points.
A lower-than-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.