Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these types of assets means a credit union may eventually have to use capital to absorb losses, shrinking its buffer of equity. 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, VALLEY ISLE COMMUNITY scored 40 out of a possible 40 points, beating out the national average of 38.15 points.
The credit union's ratio of troubled assets was 4.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.