Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.
TRUE SKY did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .
TRUE SKY's ratio of troubled assets was 4.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.