Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the chances of a failure in the future.
ENCENTUS scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.