Asset Quality Score
This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.
Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, cutting down on 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 interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.
On Bankrate's test of asset quality, MICHIGAN TECH EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.
Troubled assets made up 0.00 percent of MICHIGAN TECH EMPLOYEES's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.