Asset Quality Score
In this test, Bankrate tries to estimate the impact of troubled 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 could eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.
NASSAU EDUCATORS scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.
A below-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.