Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, YOLO scored 40 out of a possible 40 points, above the national average of 38.15 points.
A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.