Asset Quality Score
In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, IEC scored 40 out of a possible 40 points, beating the national average of 38.15 points.
Troubled assets made up 1.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.