Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having large numbers of these kinds of assets may eventually force a credit union to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, FAMILIES AND SCHOOLS TOGETHER scored 40 out of a possible 40 points, above the national average of 38.09 points.
The credit union'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.