Asset Quality Score
Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having lots of these kinds of assets could eventually force a credit union to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, HOUSTON HIGHWAY scored 8 out of a possible 40 points, less than the national average of 38.09 points.
The credit union's ratio of problem assets was 1.00 percent in our test, the same as the national average.