Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.
On Bankrate's test of asset quality, JM ASSOCIATES scored 40 out of a possible 40 points, better than the national average of 38.15 points.
JM ASSOCIATES's ratio of troubled assets was 2.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.