Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having large numbers of these types of assets suggests a credit union may have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, DUKE UNIVERSITY scored 40 out of a possible 40 points, beating the national average of 38.09 points.
A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.