Asset Quality Score
Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.
On Bankrate's asset quality test, ARSENAL scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.
ARSENAL's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.