Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, shrinking its equity buffer. 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 test of asset quality, NEW SOUTH CREDIT UNION scored 40 out of a possible 40 points, beating the national average of 38.09 points.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.