Asset Quality Score
This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.
Having a large number of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its cushion of equity. 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 failure in the future.
On Bankrate's test of asset quality, ELKO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
ELKO's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.