Asset Quality Score
This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.
Having lots of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, HOPE scored 0 out of a possible 40 points, less than the national average of 38.09 points.
Troubled assets made up 2.00 percent of the credit union's total assets in our test, exceeding the national average and something to watch.