Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these types of assets could eventually require a credit union to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.
On Bankrate's asset quality test, COMMUNITY C.U. OF SO. HUMBOLDT scored 40 out of a possible 40 points, better than the national average of 38.09 points.
The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.