Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with extensive holdings of these types of assets could eventually be forced to use capital to cover 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, reducing earnings and elevating the risk of a failure in the future.
On Bankrate's asset quality test, ABILENE TEACHERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.
A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.