Asset Quality Score
Bankrate uses this test to determine 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 cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
MEMBERSOURCE beat out 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 the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.