Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover 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 elevating the chances of a failure in the future.
On Bankrate's test of asset quality, COMMUNITY CU OF NEW MILFORD, INC. scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.