Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with a large number of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.
On Bankrate's test of asset quality, L. A. ELECTRICAL WORKERS CREDIT UN. scored 40 out of a possible 40 points, above the national average of 38.09 points.
L. A. ELECTRICAL WORKERS CREDIT UN.'s ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.