Asset Quality Score
Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets means a credit union could eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
TECHNOLOGY scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.
The credit union's ratio of problem assets was 1.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.