Asset Quality Score
Bankrate uses this test to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.
GOVERNMENT EMPLOYEES scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .
GOVERNMENT EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.