Asset Quality Score
Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, NEIGHBORHOOD scored 40 out of a possible 40 points, above the national average of 38.15 points.
Troubled assets made up 4.00 percent of NEIGHBORHOOD's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.