Asset Quality Score
This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.
A credit union with a large number of these kinds of assets may eventually have to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, UNIVERSITY OF HAWAII scored 36 out of a possible 40 points, lower than the national average of 38.15 points.
Troubled assets made up 9.00 percent of UNIVERSITY OF HAWAII's total assets in our test, greater than the national average and a potential cause for concern.