Asset Quality Score
This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.
Having a large number of these types of assets may eventually require a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.
ANDERSON scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.
Troubled assets made up 0.00 percent of ANDERSON's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.