Asset Quality Score
Bankrate uses this test to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, cutting down on its equity buffer. 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, decreasing earnings and elevating the risk of a failure in the future.
FEDERAL EMPLOYEES NEWARK scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.
FEDERAL EMPLOYEES NEWARK's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.