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 problem assets, such as unpaid mortgages.
A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, K & E EMPLOYEES scored 36 out of a possible 40 points, less than the national average of 38.15 points.
Troubled assets made up 11.00 percent of K & E EMPLOYEES's total assets in our test, higher than the national average and a potential cause for concern.