Asset Quality Score
In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.
On Bankrate's asset quality test, FRIENDS scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.
Troubled assets made up 0.00 percent of FRIENDS's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.