Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to cover losses, shrinking 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, MY CHOICE scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.
A higher-than-average ratio of troubled assets of 14.00 percent in our test was something to watch for the credit union.