Asset Quality Score
In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, 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 absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.
LINCOLN S.D.A. exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .
Troubled assets made up 0.00 percent of LINCOLN S.D.A.'s total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.