Asset Quality Score
This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.
A credit union with lots of these types of assets could eventually be required to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, LOGIX scored 40 out of a possible 40 points, beating out the national average of 38.15 points.
LOGIX's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.