Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with lots of these types of assets may eventually be required to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.
On Bankrate's asset quality test, FIRST UNITED scored 32 out of a possible 40 points, less than the national average of 38.09 points.
FIRST UNITED's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.