Asset Quality Score
Bankrate uses this test to determine the effect of problem 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 a large number of these kinds of assets may eventually have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, FERGUS scored 36 out of a possible 40 points, lower than the national average of 38.09 points.
Troubled assets made up 0.00 percent of FERGUS's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.