Asset Quality Score
Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these types of assets may eventually require a credit union to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, ARNOLD BAKERS EMPLOYEES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.