Asset Quality Score
Bankrate uses this test to estimate 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.
Having extensive holdings of these types of assets suggests a credit union could have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, FIRST UNITED scored 40 out of a possible 40 points, better than the national average of 38.09 points.
Troubled assets made up 0.00 percent of FIRST UNITED's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.