Asset Quality Score
In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
STATE EMPLOYEES CU OF MARYLAND, INC scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.
The credit union's ratio of troubled assets was 7.00 percent in our test, identical to the national average.