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 kinds of assets could eventually be forced to use capital to absorb losses, reducing its cushion of equity. 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 risk of a failure in the future.
TOWER scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.15.
TOWER's ratio of troubled assets was 6.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.