Asset Quality Score
Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, decreasing its buffer 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 future failure.
On Bankrate's asset quality test, GRANITE HILLS scored 40 out of a possible 40 points, better than the national average of 38.15 points.
A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.