Asset Quality Score
In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these kinds of assets means a credit union may eventually have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.
ENCORE scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.15.
A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.