Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.
On Bankrate's test of asset quality, KAHUKU scored 20 out of a possible 40 points, less than the national average of 38.09 points.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.