Asset Quality Score
This test's purpose is 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 past-due loans.
A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, shrinking 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 interest for the credit union, decreasing earnings and increasing the chances of a future failure.
CHEROKEE COUNTY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.
CHEROKEE COUNTY's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.