Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these types of assets means a credit union may have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.
SIGNATURE scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.15.
SIGNATURE's ratio of problem assets was 2.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.