Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.
On Bankrate's test of asset quality, SERVICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.
Troubled assets made up 2.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.