Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets means a credit union may have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.
WESTMINSTER scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.15.
A below-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.