Asset Quality Score
In this test, Bankrate tries to determine 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.
Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.
MOUNTAIN AMERICA scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.
A lower-than-average ratio of problem assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.