Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having lots of these types of assets suggests a credit union could have to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.
HOPESOUTH scored 32 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.