Asset Quality Score
This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.
Having large numbers of these kinds of assets means a credit union could have to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, NORTH STAR scored 40 out of a possible 40 points, above the national average of 38.09 points.
Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.