Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, KERN SCHOOLS scored 40 out of a possible 40 points, beating the national average of 38.09 points.
A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.