Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, MIDDLESEX-ESSEX POSTAL EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.
MIDDLESEX-ESSEX POSTAL EMPLOYEES's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.