Asset Quality Score
Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these types of assets could eventually force a credit union to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, LAFAYETTE SCHOOLS' scored 40 out of a possible 40 points, better than the national average of 38.09 points.
A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.