Asset Quality Score
Bankrate uses this test to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, diminishing its buffer of equity. 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, resulting in reduced earnings and potentially more risk of a failure in the future.
EASTERN UTAH COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.
Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.