Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets could eventually force a credit union to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.
LA CAPITOL scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.
The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.