Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with lots of these kinds of assets could 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 thus aren't earning money, decreasing earnings and increasing the chances of a failure in the future.
COVANTAGE did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .
The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.