Asset Quality Score
This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.
Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.
On Bankrate's test of asset quality, FOOTHILL scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.