Asset Quality Score
This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.
A credit union with lots of these kinds of assets could eventually be forced to use capital to cover losses, shrinking its equity cushion. 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 future failure.
On Bankrate's asset quality test, CREDIT UNION OF AMERICA scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.
A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.