Asset Quality Score
This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.
A credit union with a large number of these kinds of assets could eventually be required 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 no longer earning money, diminishing earnings and increasing the risk of a future failure.
On Bankrate's test of asset quality, VELOCITY scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.
VELOCITY's ratio of problem assets was 7.00 percent in our test, the same as the national average.