Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.
A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a future failure.
FRATERNAL ORDER OF POLICE scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.