Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, decreasing its equity cushion. 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, resulting in depressed earnings and potentially more risk of a failure in the future.
LANGSTON BAG CO. EMPLS. SAV. ASSN. scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.
LANGSTON BAG CO. EMPLS. SAV. ASSN.'s ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.