Asset Quality Score
Bankrate uses this test 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.
Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a future failure.
CAL-ED scored 16 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.
Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.