Asset Quality Score
Bankrate uses this test to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with lots of these kinds of assets could eventually be required to use capital to cover 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 lower earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, UNIVERSITY & STATE EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.15 points.
Troubled assets made up 2.00 percent of UNIVERSITY & STATE EMPLOYEES's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.