Asset Quality Score
This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.
Having lots of these types of assets means a credit union could have to use capital to cover losses, decreasing 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 depressed earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, CUBA scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
CUBA's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.