Asset Quality Score
This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.
A credit union with extensive holdings of these types of assets could eventually be forced to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, COBURN scored 40 out of a possible 40 points, above the national average of 38.09 points.
The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.