Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these types of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a future failure.
HILL DISTRICT fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 12 out of a possible 40 points .
The credit union's ratio of problem assets was 1.00 percent in our test, identical to the national average.