Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, decreasing 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 lower earnings and potentially more risk of a future failure.
NATIONAL INSTITUTES OF HEALTH did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .
Troubled assets made up 6.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.