Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. 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 asset quality test, LOUISVILLE METRO POLICE OFFICERS scored 0 out of a possible 40 points, coming in below the national average of 38.09 points.
A lower-than-average ratio of troubled assets of -29.00 percent in our test was potentially indicative of greater financial strength than other credit unions.