Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, LAREDO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
Troubled assets made up 0.00 percent of LAREDO's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.