Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with lots of these types of assets could eventually have to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.
On Bankrate's test of asset quality, NORTHERN HILLS scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
Troubled assets made up 0.00 percent of NORTHERN HILLS's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.