Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, FLAG scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.
A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.